Janice and Jonathon operate a self-service car wash facility in partnership sharing profits equally. In the year of assessment 2016 the profits of the car wash were $4,400,000 after charging: Depreciation of $250,000 Partners’ drawings of $1,000,000 GCT interest penalty of $50,000 Interest on capital of $200,000 to Janice, and $350,000 to Jonathon Capital allowances have been computed at $580,000 Jonathon is 65 years of age and received pension income of $72,000 Janice received professional fees for a consultancy of $250,000 (gross) During 2016 Janice and Jonathon paid estimated tax of $130,000 and $90,000, respectively Prepare the partnership adjusted profit statement for the year of assessment 2016 Compute the income tax payable by Janice and Jonathon for the year of assessment 2016
Janice and Jonathon operate a self-service car wash facility in partnership sharing profits equally. In the year of assessment 2016 the profits of the car wash were $4,400,000 after charging: Depreciation of $250,000 Partners’ drawings of $1,000,000 GCT interest penalty of $50,000 Interest on capital of $200,000 to Janice, and $350,000 to Jonathon Capital allowances have been computed at $580,000 Jonathon is 65 years of age and received pension income of $72,000 Janice received professional fees for a consultancy of $250,000 (gross) During 2016 Janice and Jonathon paid estimated tax of $130,000 and $90,000, respectively Prepare the partnership adjusted profit statement for the year of assessment 2016 Compute the income tax payable by Janice and Jonathon for the year of assessment 2016
Chapter3: Income Sources
Section: Chapter Questions
Problem 31P
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- Janice and Jonathon operate a self-service car wash facility in
partnership sharing profits equally. In the year of assessment 2016 the profits of the car wash were $4,400,000 after charging:
- Depreciation of $250,000
- Partners’ drawings of $1,000,000
- GCT interest penalty of $50,000
- Interest on capital of $200,000 to Janice, and $350,000 to Jonathon
- Capital allowances have been computed at $580,000
- Jonathon is 65 years of age and received pension income of $72,000
- Janice received professional fees for a consultancy of $250,000 (gross)
- During 2016 Janice and Jonathon paid estimated tax of $130,000 and $90,000, respectively
- Prepare the partnership adjusted profit statement for the year of assessment 2016
- Compute the income tax payable by Janice and Jonathon for the year of assessment 2016
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