Assignment task: Stephanie and David are a married couple who run a small business in a 50:50 partnership structure selling agricultural produce. There is no written partnership agreement.
During the year ended 30 June 2023 they generated $480,000 in sales of agricultural produce and incurred $50,000 in deductible expenses.
The partners appropriated the following partnership salaries to each other:
Stephanie $112,000
David $ 24,000
Stephanie and David also own an investment property as joint tenants which generated $180,000 in gross rent and had $28,000 in deductible expenses.
They have two children, twins, Oliver and Olivia both 23 and fulltime university students.
The twins live with their parents, and they do not have any other income.
The family does have private health insurance.