The partnership records of Gino and Hans showed sales income of $240,000 and interest income of $10,000 for the 2018/19 income year. Their Partnership Agreement provides that profits and losses are to the be shared equally after adjusting for the following:

Partners Salaries: Gino ($20,000), Hans ($20,000)

Interest on Capital contribution to Gino ($5,000)

Interest expense to Gino (Arms length loan made to the partnership): ($500)

Salaries to staff: $25,000

Superannuation to staff: $10,000

Superannuation to Partners: $30,000 (split equally)

Previous years losses of $22,000

QUESTION:

(a)Calculate the s90 PNI

(b)Prepare a Distribution Statement

(c)Calculate each partners assessable income