Question 3

Anne, Brian and Dave are carrying on a business of accounting in partnership. The Partnership Agreement provides that all profits and losses are to be shared equally except that Brian is to receive a separate additional amount of $50,000 per annum for managing the practice. Accounts for the year ending 30 June 2022 (excluding GST) show the following:

*The capital gain arose from the sale of a rental property owned by the partnership.

Required

Showing ALL your calculations and referring to ALL relevant sections in the Income Tax Assessment Act 1936, calculate the Partnership Net Income under s 90 of the ITAA36 for the income Year ending 30 June 2022. Also work out the net income for each of the partners under s 92 of the ITAA 36 for the year ending 30 June 2022.