Mike and Michelle who are partners in a business paid the following annuities to former employees and partners and their dependants:

R

- Abel, a former partner who retired after ten years (not the repayment of his share) 30 000

- Bennie, the widow of a deceased employee and her two children 12 000

- Carlos, a retired employee 8 000

Mike and Michelle share the profits and losses in the ratio of 60:40, respectively.

Required:

Calculate the amounts that both partners can claim as deductions.

Answer rating: 100% (QA)

total amount to be deducted 300... View the full answer