Question
The Boomer partnership has three equal partners. For 2013/14, there was a net partnership loss of $20,000, but business improved in 2014/15 and the partnership
The Boomer partnership has three equal partners. For 2013/14, there was a net partnership loss of $20,000, but business improved in 2014/15 and the partnership net income was $315,000. Because of the extra work performed by Partner A during the 2014/15 year, the three partners agreed at their partners meeting on 20 June 2015 that Partner A would be paid a salary of $45,000 before the net income of the partnership is distributed to the partners.
Explain how the net income of the partnership for 2014/15 would be taxed.
Explain the tax impact of contributions to a complying superannuation fund of $26,000 in respect of each partner and $85,000 in respect of employees of the Boomer partnership on the net income for the year ended 30 June 2015
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