Alon is a retired Doctor. His wife Nancy is a retired Social Worker. Both wish to remain active and they invest in a gif
Posted: Fri Mar 04, 2022 9:36 am
Alon is a retired Doctor. His wife Nancy is a retired Social
Worker. Both wish to remain active and they invest in a gift shop
that is to be managed by their daughter Heather, who is aged 35.
They formed a partnership of three called "Heather 's Gift
Shop".
Alon and Nancy contributed $40,000 each to fund the purchase of
the shop. The partnership agreement provides:
The accounts for this income year show
the following:
Income ($)
Sales (excluding GST)
240,000
Expenses ($)
Cost of goods sold
130,000
Interest on capital paid to Alon and Nancy
8,000
Salary to Heather
25,000
Superannuation to Heather
6,000
Lease payments on car (excluding GST)
7,000
Other deductible operating expenses (excluding GST)
14,000
The leased car was used 80% of the
time for business and 20% of the time for private purposes.
With reference to the facts above:
Worker. Both wish to remain active and they invest in a gift shop
that is to be managed by their daughter Heather, who is aged 35.
They formed a partnership of three called "Heather 's Gift
Shop".
Alon and Nancy contributed $40,000 each to fund the purchase of
the shop. The partnership agreement provides:
The accounts for this income year show
the following:
Income ($)
Sales (excluding GST)
240,000
Expenses ($)
Cost of goods sold
130,000
Interest on capital paid to Alon and Nancy
8,000
Salary to Heather
25,000
Superannuation to Heather
6,000
Lease payments on car (excluding GST)
7,000
Other deductible operating expenses (excluding GST)
14,000
The leased car was used 80% of the
time for business and 20% of the time for private purposes.
With reference to the facts above: