FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Question A
Homer (25%) and Marge (75%) are partners in a business which manufactures Duff
Beer.
Homer works full-time in the business and earns a salary of $86,000. Marge works
part-time in the business and earns a salary of $20,000.
The net profit of the partnership was $300,000 and included the following items of
income and expenses:
Income
Dividends with franking credits attached of $16,000
80,000
Expenses
Interest on capital - paid on basis of the partnership
interests
4,200
Interest paid to Marge. On 1 July 2017 Marge lent the
partnership $50,000 to buy some new assets.
5,000
Superannuation:
Partners - paid at the statutory 9.5% on their wages
10,070
Wages:
Partners as per above
106,000
Required:
1. Calculate the net income of the partnership.
2. Determine the partnership distribution and calculate the taxable income and net
tax payable by each partner.
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