Question $1($CLO #$3)$

Karen and Dane operate a Storage Company in Partnership. The Company is located in

Downtown Kingston, sharing profits $60\%$ and $40\%$ respectively.

In the year of assessment $2017,$ the profit of the Partnership was $$5$ million after charging:

$

Depreciation $500,000$

Partners drawings $1,000,000$

GCT Interest penalties $100,000$

Additional Information:

$1.$ Interest on capital $$ Karen $$400,000$ and Dane $$300,000.$

$2.$ Capital allowances have been computed at $$500,000.$

$3.$ Dane received professional fees for a consultancy gross of $$350,000.$

$4.$ During $2017$m Karen and Dane paid estimated tax of $$200,000$ and $$100,000$ respectively.

Required

Prepare the Partnership adjusted profit statement and annual returns for each partner for the year of

assessment $2017.$