This is an Essay style Question. Students MUST answer the question with detailed working-out, calculations, explanations of the relevant legal principles, and reference to relevant sections of the laws, case laws and Tax Rulings where applicable. Partnership 10 Marks Sadina and Samjhana purchased an investment commercial property jointly with half a share each on 1 July 2023. The property is situated at Budgewoi and the purchase price is $1,500,000. They are planning to use this building to set up a Fish and Chips business with view to make profit. To fund this property purchase, they took out a loan of $900,000 from the Commonwealth Bank. According to their partnership agreement, they must share profits on a 60% (Sadina) / 40% (Samjhana) basis after partners' salary of $30,000 each and 8,000 interest on capital account for each of them. Losses are also shared on the same basis. During the 2024 tax year Sadina received rent income of $50,000 from her investment property unrelated to the partnership. Samjhana received $70,000 fully franked dividend on her Macquarie Bank shares, also unrelated to the partnership. At the end of the 2024 tax year, their partners show you the following transactions: 'Sales (fish and chips) $500,000 Purchases of food and drinks $99,000 Salaries for staff: $120,000 'Superannuation for staff $14,400 Salary for Sadina: $30,000 Superannuation for Sadina $3,600 Salary for Samjhana: $30,000 Superannuation for Samjhana: 3,600 Interest on capital account to both partners: $9,500 each Bathroom Renovation for the Fish and Chips shop $40,000 Operating Expenses: 27,000 Required: Answer the following 3 questions in relation to the year ended 30 June 2024. Students must give reasons for their answer. This discussion must include an analysis of the pertinent sections of the relevant legislation, rulings, and the relevant case law. 1. Calculate the net income of the partnership (4 marks) 2. Explain how you would calculate Sadina's taxable income, including her distributions from the parmership. (3 Marks) 3. Explain how you would calculate Samjhana's taxable income, including her distributions from the partnership