With full explanation (i) determine the net income of the Rocketfone (ii) determine the distribution of the net income to the partners and (iii) list any other items that you believe should be considered in the preparation of Wileys tax return..

With full explanation (i) determine the net income of the Rocketfone (ii) determine the distribution of the net income to the partners and (iii) list any other items that you believe should be considered in the preparation of Wileys tax return

 

With full justification
Determine Rocketfone’s net income; decide how the net income will be distributed to the partners; and (iii) make a list of any other elements you think should be taken into account when preparing Wiley’s tax return.

In collaboration with Ralph Sheepdog, Wiley Coyote also runs the Rocketfone mobile phone store out of Wiley-owned property. According to a partnership agreement, profits and losses are to be distributed 2:1. The following transactions were noted by the partnership during 2015–16.
Receipts
Traders’ profits Investopedia Ltd.’s fully franked dividends totaled 396,000 and 28,000
proceeds from the sale of Lamb Supreme Ltd. shares, $7000 in payments stock, and overhead trading, Wiley received a salary of $84000 from Anita Coyote. * 75,000 45,000
A rent of $55,000 was paid to Wiley (including $30,000 for a 12-month advance payment made on June 30, 2016).
Ralph received interest in the ban. Wiley received interest on capital payments of $17,000.
Ralph received $12,000 in interest on his investment.
Wiley 24,000 made a contribution through superannuation, and the shares were bought for $1,000 in 2012.
In a privately published decision, T. Commissioner determined that a $45,000 pay was appropriate.
Required:
Determine the net income of Rocketfone, decide how the net income will be distributed to the partners, and note any other items you think should be taken into account when preparing Wiley’s tax return.

 

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