Ernie Wombat is a primary producer who commenced business in 2012/13. The following data relates to Ernies
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Question:
Ernie Wombat is a primary producer who commenced business in 2012/13. The following data relates to Ernie’s first 6 years of trading:
Year | Assessable Income | Deductions |
2012/13 | $ 32,000 | $ 15,000 |
2013/14 | 35,000 | 20,000 |
2014/15 | 31,000 | 39,000 |
2015/16 | 42,000 | 21,000 |
2016/17 | 45,000 | 22,000 |
2017/18 | 51,000 | 25,000 |
- All assessable income and deductions are from primary production.
- The deductions do not include any amounts that may be deductible for losses of previous years.
Required:
- Calculate Ernie’s taxable income for each tax year.
- Calculate Ernie’s average income for each tax year.
Tip: A $0 taxable income year is counted as a year for average income calculation purposes.
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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