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On 1 October 2016, Mark and Jack, two computer programmers, commenced a partnership.

On 1 October 2016, Mark and Jack, two computer programmers, commenced a partnership. As Mark contributed most of the working capital, the partnership agreement provided that Mark would receive 60% of the net partnership income. For the year ended 30 June 2018, the partnership returned net income of $120,000. This was after a payment of $10,000 in interest to Mark on $150,000 capital which he had contributed to the partnership. $30,000 of the net partnership income was derived from overseas. 

(a) Calculate the net income of each partner for the year ended 30 June 2018.

(b) If John was a non-resident for tax purposes, how would this effect the net income of each partner?  

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