Texts: Damien and Linda are residents of Australia for tax purposes. They carry on business as a partnership together in Sydney. According to the partnership agreement, Damien and Linda share profits and losses on the basis of:
• Damien: 60 percent
• Linda: 40 percent.
During the year ended 30 June 2022, their trial balance showed the following:
Gross sales: $978,000
Interest income: $140
Purchase of trading stock: $414,200
Wages to employees (other than Damien and Linda): $116,000
Salary paid to Damien: $32,000
Drawings by Damien: $14,000
Drawings by Linda: $0
Other tax-deductible expenses: $284,500
Stock on hand at 1 July 2021 was $68,000. Stock on hand at 30 June 2022 was $97,000.
For the year ended 30 June 2021, the partnership made a tax loss of $26,000.
Required:
(a) Calculate the net income of the partnership for the year ended 30 June 2022.
(b) Calculate the amount to be included in the assessable income of each partner's personal income tax return for the year ended 30 June 2022.