Question

13. Cox, North, and Lee form a partnership. Cox contributes $189,000, North contributes $157,500, and Lee...

13. Cox, North, and Lee form a partnership. Cox contributes $189,000, North contributes $157,500, and Lee contributes $283,500. Their partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of $178,000 for its first year, what amount of income is credited to Cox's capital account?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Revaluing and Contributing Assets to a Partnership Demarco Lee invested $53,000 in the Camden & Sayler...
Revaluing and Contributing Assets to a Partnership Demarco Lee invested $53,000 in the Camden & Sayler partnership for ownership equity of $53,000. Prior to the investment, equipment was revalued to a market value of $366,000 from a book value of $294,000. Kevin Camden and Chloe Sayler share net income in a 1:3 ratio. Required: a. Provide the journal entry for the revaluation of equipment. For a compound transaction, if an amount box does not require an entry, leave it blank....
Cooke and Thatcher form the C&T Partnership. Cooke contributes equipment with a fair market value of...
Cooke and Thatcher form the C&T Partnership. Cooke contributes equipment with a fair market value of $80,000 and a basis of $35,000, in exchange for an 80 percent interest in the partnership capital and profits. Thatcher performs services worth $20,000 for the partnership in exchange for a 20 percent interest in capital and profits. What is the amount of Cooke’s recognized gain or loss (if any) as a result of the contribution to the partnership in exchange for the partnership...
Jesse and Karla form a “50/50” partnership. Jesse contributes property FMV of $40,000 9basis of $20,000)....
Jesse and Karla form a “50/50” partnership. Jesse contributes property FMV of $40,000 9basis of $20,000). Karla contributes $40,000 in cash. The property is later sold for $30,000. If the partnership uses the traditional method of allocation, how much gain does each partner recognize for both book and tax purposes? A. Jesse recognizes a $10,000 gain for tax purposes and also a $10,000 gain for book purposes because the adjustment for book purposes cannot be less than the amount for...
5. Barbara Stone and James Lovejoy form a partnership with capital contributions of $700,000 and $800,000...
5. Barbara Stone and James Lovejoy form a partnership with capital contributions of $700,000 and $800,000 respectively. Their partnership agreement calls for Barbara Stone to receive $150,000 in salary and each partner is to receive a 15% interest allowance on the partner's beginning balance with the remaining income or loss divided equally. If net income for the initial year is $400,000, calculate Barbara Stone and James Lovejoy's respective share of net income and record the entry. 6. Barbara Stone and...
Partnership agreements can vary, depending upon what a partner contributes to the agreement. Each partner brings...
Partnership agreements can vary, depending upon what a partner contributes to the agreement. Each partner brings certain personal skills and assets into a partnership. For example, one partner could supply technical knowledge, while the other partner supplies business knowledge or perhaps the financing for the partnership. When there are two parties involved, the partnership agreement would easily be split 50/50. However, when there are multiple partners involved, the partnership becomes more complicated. Perhaps one partner supplies time to run the...
Partner A contributes cash of $10,000 to a partnership in exchange for a 10% interest. In...
Partner A contributes cash of $10,000 to a partnership in exchange for a 10% interest. In the partnership’s first taxable year, Partner A is allocated $15,000 in losses. In the partnership’s second taxable year, Partner A is allocated $10,000 of income. In the partnership’s third taxable year, Partner A is allocated both a $3,000 capital loss and a $3,000 ordinary loss. Assuming Partner A materially participates in the partnership, to what extent (in terms of both amount and character) will...
1.      A, B, C and D decided to form a partnership to conduct restaurant business. On...
1.      A, B, C and D decided to form a partnership to conduct restaurant business. On 01/01/2015, A contributed 100,000 cash. B contributed 30,000 worth of inventory and B has expertise that is worth 20,000, recognized by all the partners. C contributed by PPE with market value of 100,000 and loan of 50,000 which will be transferred to the partnership. D contributes some patents with market value of 100,000. Below are the rules to divide the profits (losses) each year....
Q-2: Jahangir, Zain, and Zohaib invested Rs.40,000, Rs.56,000, and Rs.64,000, respectively, in a partnership. During its...
Q-2: Jahangir, Zain, and Zohaib invested Rs.40,000, Rs.56,000, and Rs.64,000, respectively, in a partnership. During its first calendar year, the firm earned Rs.124,500. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the Rs.124,500 net income to the partners under each of the following separate assumptions: The partners (1) have no agreement on the method of sharing income and loss; (2) agreed to share income and loss in the...
Gray, Stone, and Lawson open an accounting practice on January 1, 2016, in San Diego, California,...
Gray, Stone, and Lawson open an accounting practice on January 1, 2016, in San Diego, California, to be operated as a partnership. Gray and Stone will serve as the senior partners because of their years of experience. To establish the business, Gray, Stone, and Lawson contribute cash and other properties valued at $380,000, $350,000, and $175,000, respectively. An articles of partnership agreement is drawn up. It has the following stipulations: Personal drawings are allowed annually up to an amount equal...
Problem On January 1, Year 1, G and L form a limited partnership to acquire and...
Problem On January 1, Year 1, G and L form a limited partnership to acquire and operate a rental apartment building. L, the limited partner, contributes $90 and G, the general partner, $10. The partnership obtains a nonrecourse loan from an unrelated financial institution for $900 and purchases a building (on leased land) for $1,000. The loan is secured by the building. The loan requires interest to be paid currently, but does not call for any principal payment for 5...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT