How would this affect the calculation of the net income

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Question - On 1 October 2020, Duane and Kevin, two Cryptocurrency advisory professionals, commenced a partnership. As Duane had contributed most of the working capital, the partnership agreement provided that Duane would receive 60% of the net partnership income.

For the year ended 30 June 2021 the partnership returned net income of $120,000. This was after a payment of $10,000 in interest to Duane on $120,000 capital which he had contributed to the partnership. $40,000 of the net partnership income was derived from overseas.

Required -

1. Calculate the net income of each partner for the year ended 30 June 2021.

2. If Kevin had only been a resident of Australia since 1 January 2020, how would this affect the calculation of the net income of each partner?

Reference no: EM133078188

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