Calculate each partner assessable income

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Question - T&C Printing is a stationery store operated in partnership by Tim and Caitlin. The partnership agreement provides the following an annual salary of $38,500 to Caitlin for working full-time in the business interest to be paid at the rate of 15% on each partner's capital contribution with Tim contributing $90,000 and Caitlis $30,000 respectively.

Apart from the above. Tim and Caitlin otherwise share partnership profits equally. Tim loaned $15,000 to the business as working capital on 1 May 2019. Interest at the rate of 5% pa is paid on any loan made to the partnership.

The net profit of the partnership was $150,000 for the year ended 30 June 2021.

Required -

a) Calculate the s90 Adjusted Partnership Net income?

b) Calculate the distributable amount?

c) Calculate the profit distribution to each partner?

d) Calculate each partner's assessable income?

Reference no: EM133182325

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