Question A
Homer and Marge are partners in a business which manufactures Duff
Beer.
Homer works fulltime in the business and earns a salary of $ Marge works
parttime in the business and earns a salary of $
The net profit of the partnership was $ and included the following items of
income and expenses:
Income
Dividends with franking credits attached of $
Expenses
Interest on capital paid on basis of the partnership
interests
Interest paid to Marge. On July Marge lent the
partnership $ to buy some new assets.
Superannuation:
Partners paid at the statutory on their wages
Wages:
Partners as per above
Required:
Calculate the net income of the partnership.
Determine the partnership distribution and calculate the taxable income and net
tax payable by each partner.