Jeremy Norton is a property investor and the owner of a French bakery in Balmain. All payments are fully substantiated

Receipts

Cash Sales	275,240
Cash received from Debtors	15,700
Rent received (See Note 3)	21,000
Ten Year business loan from NAB bank 1/11/21	40,000
Contra from plumber	1,200
Payments
Payments to creditors for trading stock	95,650
Speeding fine paid in making deliveries	180
Loan repayments - principal	4,700
-Interest	4,000
Borrowing costs on business loan	4,000
Wages- spouse (the ATO considers $35,000 to be reasonable)	65,000
- Other staff	24,000
Repairs to shop caused by storm damage on 31/3/2022	4,800
Superannuation-self	23,000
-Other staff	8,000
Drawings	17,000
Membership of Balmain business Club	250
Entertainment of suppliers at above club	750
Staff Christmas party	670
FBT paid for christmas party	450
Rental Property Expenditure
Painting in interior following departure of tenant	4,000
Repairs to dishwasher	320

Additional Information

1. Jeremy takes trading stock home to consume with his wife Joan and children aged 2 and 7. He will use the commissioner's estimate for trading stock

2.

	1/7/2021	30/6/2022
Trading stock on Hand	2,500	2,400
Debtors	900	1,500
Creditors	1,600	400

3. At 30 June 2022, Jeremy's tenant owes him $1,000 rent

Required: 

Calculate taxable income of Jeremy for the year ended 30 June 2022.

Answer rating: 100% (QA)

To calculate Jeremy Nortons taxable income lets start with the income and then subtract th... View the full answer