Noku and Munya are in partnership for the past four years sharing profits and losses in the

ratio 2:4 respectively. The main business of the partnership is the manufacture of farm
implements, the following are the activities of the partnership for the 2019 tax year.

$
Gross profit 400 000
Rental income from block of flats 40 000
Foreign interest 30 000
Dividends: OK Mart 10 000
Less: Expenses

Depreciation of assets 20 000

Medical aid: employees 12 000
: Partners: Noku 2 000 and Munya 4000 6 000
Insurance: for assets 4 200
: Life of Noku 3 000
Donation to destitute homeless person‘s fund 52 000
Loss on sale of generator 1 000
Pension contribution: employees 15 000
: Partners: Noku 5600 and Munya 5 400 11 000
Noku attendance of trade mission connected to the partnership‘s 3 200
business
Salary and wages: employees 20 000
VAT 3 800

Net profit 328 800

Additional information
a) The partnership owned the following assets as at 1 January 2019

Assets Original cost $ Date purchased Income Tax Value $

1/1/19
Machinery 20 000 May 2015 5 000
Furniture & Equipment 10 000 August 2015 5 000
Delivery trucks 42 000 February 2012 nil
Merc Benz 14 000 October 2016 7 500
Computers 4 000 January 2016 2 400

2. During the year, the partnership acquired a Ford Ranger single cab for Munya for 17
000, the car was used 30% for private purposes.

3. The generator was sold for $3000; it was fully depreciated for tax purposes.

4. The income statement of the partnership reflected a profit of $ 328 800 after debiting
expenses of $ 151 200 for 2019 tax year.

Required

a) Calculate the partnership minimum taxable income for the tax year ended 31 December
2019
b) Calculate the partners‘ taxable income for the year ended 31 December 2019