My task is to analyse client information outlined in the two different case studies below and present the findings in two Statement of Advice.

1) We are required to provide advice on preparation of partnership tax return (N & S partnership)

2) we are required to calculate the franking account and tax payable by Technical Solutions Pty Ltd.

For each question we are expected to:

1) identify the facts and issues for each case

2) apply the relevant legislation and/or case law.

Assessment Instructions Statement of Advice 1 - Preparation of a tax return for a partnership taxpayer Your client Nicole and Sam attended your office to have their 2023-year tax return prepared. Nicole Mania & Sam Baker are equal partners of N&S partnership that is in the business of manufacturing shelters for pets. Both have contributed equal amounts of capital. Nicole is a silent partner while Sam spends most of the time working in the partnership business. To reflect the extra time that Sam spends in the business, they have agreed that Sam should receive an annual salary of $80,000. As per the partnership agreement, Nicole and Sam will share partnership profits equally after allowing salaries and interest on capital. The following information was provided by the business. Sales $1,102,000 Cost of Sales % 650,000 Other expenses (including Sam's salary and decline in value) $ 310,000 Interest paid (note below) $ 13,300 Mote: interest on capital for Nicole $2,600, Interest on capital for Sam $2,900 and Interest paid to Sam $7.800 for loan borrowed, partnership used the loan to maintain working capital) Proceeds from sale of various assets during 2023 * Sale of Qantas shares held as an investment $8,900 * Sale of Telstra shares held as an investment $7,500 * Sale of land held as an investment $120,000 + Sale of business car used for delivering goods @ $19,000 Further information regarding the disposal of the partnership's assets a) Qantas shares were purchased on 1 March 2020 for $11,600 b) Telstra shares were purchased on 22 November 2022 for $2,100 c) Land was purchased on 8 May 2010 for $70,000 d) The business car was purchased on 1 July 2020 and had an adjustable value of $10,500 at the time of disposal. Other information: Nicole is also employed by an Australian Bank and earmed a total salary of $60,000. 1) What is the ITAA36 s 90 net income of the partnership? 2) How much is to be allocated to each partner? 3) What is the taxable income for Nicole and Sam who are equal partners of the N&S partnership? Statement of Advice 2 - Calculate the franking account and tax payable by Technical Solutions Pty Ltd Jerry Seinfeld is a director of Technical Smart Solutions Pty Ltd, an Australian resident private company, with a corporate tax rate for imputation purposes for the 2022/23 income year of 30%. Jerry provided you with the following information regarding the company's franking account: Date Transactions Amounts 1 July 2022 Opening balance $ 300 30 August 2022 Tax refund from 2022 company tax return $2,500 20 October 2022 GST paid relating 2022 financial year $19,000 11 November 2022 PAYG instalment paid relating September quarter 2022 $1,500 28 December 2022 Paid fully franked dividend $12,000 2 February 2023 Received fully franked dividend from Australian company $7,000 27 February 2023 PAYG instalment paid relating December quarter 2023 $1,400 25 May 2023 PAYG instalment paid relating March quarter 2023 $1,400 28 June 2023 Paid unfranked dividend $18,000 Other information (1) Benchmark franking percentage for Technical Solution Pty Ltd is 100% (2) Technical Solutions Pty Ltd has a taxable income of $47,000 for 2022/23. Required 1) Prepare Technical Solutions Pty Ltd's franking account for the 2022/23 tax year (you must use the running balance table to complete the franking account) and explain/advise any consequences arising from the franking account balance at 30 June 2023. 2) Calculate net tax payable (refundable) for the company