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1. Calculate the net income of each partner for the year ended 30 June 2021.  2. If Kevin had only been a resident of Australia since 1 January 2020, how would this affect the calculation of the net income of each partner?    Please answer both subparts.

1. Calculate the net income of each partner for the year ended 30 June 2021.  2. If Kevin had only been a resident of Australia since 1 January 2020, how would this affect the calculation of the net income of each partner?    Please answer both subparts.

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 20P
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On 1 October 2020, Duane and Kevin, two Cryptocurrency advisory professionals, commenced a partnership. As Duane had contributed most of the working capital, the partnership agreement provided that Duane would receive 60% of the net partnership income. For the year ended 30 June 2021 the partnership returned net income of $120,000. This was after a payment of $10,000 in interest to Duane on $120,000 capital which he had contributed to the partnership. $40,000 of the net partnership income was derived from overseas.

1. Calculate the net income of each partner for the year ended 30 June 2021. 

2. If Kevin had only been a resident of Australia since 1 January 2020, how would this affect the calculation of the net income of each partner? 

 

Please answer both subparts.

I will really upvote. Thanks

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