Annie and Brad are partners in the A&B Accounting Practice, located in Hawthorn. The partnership's accounting...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Annie and Brad are partners in the A&B Accounting Practice, located in Hawthorn. The partnership's accounting profit for the year ending 30 June 2020 was $150,000 after the following items were expensed: • Interest paid on an advance from Brad Salary paid to Annie $21,000 $5,000 The partnership agreement provides that the partners are share profits and losses equally after allowing for salaries and interest on partners' capital accounts. Required: a) Calculate the net income of the partnership for the year ending 30 June 2020 as defined section 90 of the Income Tax Assessment Act 1936. b) Prepare a statement showing the distribution of the net income of the partnership to each partner for the year ending 30 June 2020. Cite relevant legislation to support of your answer. Annie and Brad are partners in the A&B Accounting Practice, located in Hawthorn. The partnership's accounting profit for the year ending 30 June 2020 was $150,000 after the following items were expensed: • Interest paid on an advance from Brad Salary paid to Annie $21,000 $5,000 The partnership agreement provides that the partners are share profits and losses equally after allowing for salaries and interest on partners' capital accounts. Required: a) Calculate the net income of the partnership for the year ending 30 June 2020 as defined section 90 of the Income Tax Assessment Act 1936. b) Prepare a statement showing the distribution of the net income of the partnership to each partner for the year ending 30 June 2020. Cite relevant legislation to support of your answer.
Expert Answer:
Answer rating: 100% (QA)
a Net income is the profit that is after all expenses i... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
Students also viewed these law questions
-
For the financial year ending 30 June 2020, Malkin Ltd has some liability issues for which it seeks your help: a) The company sells widgets and provides a one-year warranty. 100,000 widgets were sold...
-
For the year ending 30 June 2020, Don Ltd reports a net profit after tax of $6.1 million. At the beginning of the financial year Evita Ltd had 2,500,000 fully paid ordinary shares outstanding. Don...
-
A Ltd. and B Ltd. are partners in the Triple M partnership. A Ltd. and B Ltd. share equally in the income or loss of the partnership annually. The partnership earned business income of $100,000 and...
-
Now apply one of those decision making models (Philosophical) to this scenario: Scenario: You are a CPA in the accounting department at a HealthCare System with three other accountants. You are good...
-
Discuss the role of experimentation in helping Motorola design handsets that are preferred by consumers.
-
The rocket speeds shown in Figure Q27.18 are relative to the earth. Is the speed of A relative to \(B\) greater than, less than, or equal to \(0.8 c\) ? 0.5c FIGURE Q27.18 Earth 0.3c
-
Water at \(35^{\circ} \mathrm{C}\) is pumped through a horizontal, \(200-\mathrm{m}\)-long, \(30-\mathrm{mm}\)-diameter tube at \(0.25 \mathrm{~kg} / \mathrm{s}\). Over time, a 2-mm-thick layer of...
-
The sales price per unit is $13 for the Dakota Companys only product. The variable cost per unit is $5. In year 2011, the company sold 80,000 units, which was 10,000 units above the break-even point....
-
Compute how much money you would need to invest each year in the future for 54 years in order to have $1 million in 54 years if you earn 8.88% per year. B) Compute the monthly payment on a ten-year...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Based on research conducted by the Department of Economic Analysis, the government and policy advisors of an economy believe that the full employment GDP is $7500 billion, and Pe, the overall...
-
True Or False Trespass-on-the-case actions required proof of the defendants negligence or wrongful intent.
-
Describe the evolution of tort law. Identify blood feuds, moots, actions in trespass, and trespass on the case in the process.
-
True Or False Any blatantly immoral conduct is considered a tort.
-
True Or False Public policy arguments do not consider societal interests because the dispute at issue is between individuals.
-
True Or False Negligence arose as a cause of action because of a concern that few could afford to travel under the trespass theory of tort law.
-
A child whose weight is 296 N slides down a 5.70 m playground slide that makes an angle of 36.0 with the horizontal. The coefficient of kinetic friction between slide and child is 0.0710. (a) How...
-
Solve each equation or inequality. |6x8-4 = 0
-
Chad is divorced and has custody of Brett, his 14-year-old son. Chads ex-wife has custody of their daughter, Sara. During the year, Chad incurs $3,000 for orthodontic work for Sara to correct a...
-
In 2015, Ace Corporation reports gross income of $200,000 (including $150,000 of profit from its operations and $50,000 in dividends from less-than-20%-owned domestic corporations) and $220,000 of...
-
If an individual is not employed and has no earned income, is it possible to take a child and dependent care credit for otherwise qualifying child and dependent care expenses? Explain.
-
Determine whether each of the following statements is true or false: Management accountants often work in cross-functional teams throughout the organization.
-
Determine whether each of the following statements is true or false: The internal audit function reports to the audit committee of the board of directors.
-
Determine whether each of the following statements is true or false: Management accountants are now more often looked upon as internal business advisors rather than bean counters recording historical...
Study smarter with the SolutionInn App