2. 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 A. Prepare the partnership adjusted profit statement for the year of assessment 2016 B. Compute the income tax payable by Janice and Jonathon for the year of assessment 2016
2. 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 A. Prepare the partnership adjusted profit statement for the year of assessment 2016 B. Compute the income tax payable by Janice and Jonathon for the year of assessment 2016
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. 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
A. Prepare the partnership adjusted profit statement for the year of assessment 2016
B. Compute the income tax payable by Janice and Jonathon for the year of assessment 2016
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