Fred and Wilma are partners in a partnership business that sells computers. They are both Australian residents. Their draft profits of the partnership for the 2021 year are $100,000. According to their partnership agreement, Wilma is entitled to the first $50,000 as she works in the business, and the remaining amounts are split 50/50. Fred has also drawn $20,000 as a preliminary distribution, hoping that there will be a sufficient distribution at the end of 2021 to cover his drawings to date.

 

Fred and Wilma
Income:	$200,000
Outgoings:
Fred's Drawings	$20,000
Business Expenses	$30,000
Wilma Drawings	$50,000
Draft Profit	$100,000

 

 

REQUIRED:

1. Calculate Wilma's taxable partnership distribution for the 2021 income year showing all workings.

 

1. Well- Structured Professional Letter Of Advice With The Strong Evidence Of Case Laws And Rulings

Partnership -BLO5539 (AUSTRALIAN TAX LAW AND PRACTICES)

Answer rating: 100% (QA)

Calculation of Wilmas taxable partnership distribution for the 2021 income year Fred and Wilmas part... View the full answer