Janice and Jonathon operate a self-service car wash facility in partnership, sharing profits equally. In the year of assessment, 2014, profits of the car wash were $4 400 000, after charging:

Depreciation $250 000; partners’ drawings $1 000 000; GCT interest penalty $50 000; interest on capital – Janice $200 000, Jonathon $350 000. Capital allowances have been computed at $580 000. Jonathon is 65 and received a pension income of $72 000. Janice received professional fees for a consultancy – gross of $250 000. During 2014, Janice and Jonathon paid estimated taxes of $130 000 and $90 000, respectively.

Show each partner’s share of profit for taxation purposes.

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Solution Partner Janice Jonathon62y... View the full answer