Computation of Partnership Income and Tom's Taxable Income

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION LAW
Table of Contents
Answer to question 1:.................................................................................................................2
References:.................................................................................................................................5

2TAXATION LAW
Answer to question 1:
Computation of Partnership Income Section Brief Descriptions
Particulars
Amou
nt ($)
Amou
nt ($)
Assessable Income
Gross receipts from
Trading
20000
0
Section 6-5 of the
ITAA 1997
Income that originates
from the business
Bad debts recovered 20000
Section 6-5 of the
ITAA 1997
Income that originates
from the business
Net Exempt Income 20000
Section 11-15 of
the ITAA 1997
Income that is exempted
from tax
Not Assessable Not
Exampt Income 10000
section 6-23 of the
ITAA 1997
Income that is exempted
from tax
Dividend 50% franked 5000 5000
Section 44 (1)
ITAA 1936 Business Income
Unfranked Portion 2000
Franking Credits 3000
Total Assessable
Income
26000
0
Eligible Payments as
deductions
Purchase of Trading
Stock
10000
0
Section 8-1 of the
ITAA 1997 Business Expenditure
Interest on cash
advance 2000
Section 8-1 of the
ITAA 1997 Business Expenditure
Salaries and rent
payment 50000
Section 8-1 of the
ITAA 1997 Business Expenditure
Legal expense in
recovering bad debt 1000
Section 8-1 of the
ITAA 1997 Business Expenditure
Borrowing expense on
loan 5000
Section 25-25 of
the ITAA 1997 Business expenses
Cost of Sales 60000
Section 8-1 of the
ITAA 1997
Total expenses
eligible as deductions
21800
0