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Robin and Nissan are the owners of a gift shop. They are partners in a partnership of the shop. They share profits and losses equally

Robin and Nissan are the owners of a gift shop. They are partners in a partnership of the shop. They share profits and losses equally

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Robin and Nissan are the owners. of a gift shop. They are partners in a partnership of the shop. They share profits and losses equally under the partnership agreement. In addition, Robin receives salaries of $60,000 every year from the partnership for taking on the daily management role in the shop. In this income year, the partnership makes a loss of $90,000 after deducting the salaries paid to Gary. Required: Explain the tax implications of Robin and Nissan in this income year.
Transcribed Image Text:Robin and Nissan are the owners. of a gift shop. They are partners in a partnership of the shop. They share profits and losses equally under the partnership agreement. In addition, Robin receives salaries of $60,000 every year from the partnership for taking on the daily management role in the shop. In this income year, the partnership makes a loss of $90,000 after deducting the salaries paid to Gary. Required: Explain the tax implications of Robin and Nissan in this income year.
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