Question

A ,B, C form a partnership and agree to allocate remaining income equally affter giving interest...

A ,B, C form a partnership and agree to allocate remaining income equally affter giving interest of 10% on capital balances of $100,000 ,$300000 and $400000 and salaries of $40,000,,$20000 ans $10000 respecetively. calculate the net income(los) allocation to each partner under each of the following independent sistuations:

a. Net income of $200000

b. Net income of 10,000

c.Loss of $10000

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
The following is an example of partnership income allocation: Each partner receives 7% interest on his...
The following is an example of partnership income allocation: Each partner receives 7% interest on his or her beginning capital account balances. Partner A receives a $20,000 salary and 30% of the profit or loss. Partner B receives a 15% bonus on distributable income after interest and salaries and shares in 25% of the profit and loss. Partner C has a profit and loss ratio of 45%. The partners beginning capital balances are as follows: A = $25,000 B =...
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....
Partner 1 and Partner 2 share income equally. During the current year the partnership net income...
Partner 1 and Partner 2 share income equally. During the current year the partnership net income was $40,000. Partner 1 made withdrawals of $12,000 and Partner 2 made withdrawals of $17,000. At the beginning of the year, the capital account balances were: Partner 1 capital, $42,000; Partner 2 capital, $58,000. Partner 2’s capital account balance at the end of the year is what? Please show work to help me understand the material.
Calvin and Hobbs formed a partnership with capital contributions of $150,000 and $180,000, respectively.The partnership agreement...
Calvin and Hobbs formed a partnership with capital contributions of $150,000 and $180,000, respectively.The partnership agreement called for Calvin to receive a $60,000 annual salary allowance. They also agreed to allow each partner a share of income equal to 10% of their initial capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $110,000, what are Calvin and Hobbs respective ending capital balances after they each withdrew $40,000 for...
McGill and Smyth have capital balances on January 1 of $42000 and $38000, respectively. The partnership...
McGill and Smyth have capital balances on January 1 of $42000 and $38000, respectively. The partnership income-sharing agreement provides for 1 annual salaries of $16,000 for McGill and $10,000 for Smyth, interest at 11% on beginning capital balances, and 3 remaining income or loss to be shared 70% by McGill and 30% by Smyth Journalize the allocation of net income in each of the situations above
Partners A and B form a partnership where each receive a 50% interest in capital and...
Partners A and B form a partnership where each receive a 50% interest in capital and profits. Partner A contributes cash of $25,000 and land valued at $25,000. Partner A has a basis in the land of $20,000 and has held it for two years. Partner B contributes equipment (with a basis to B of $15,000 and a fair market value of $30,000) and inventory (with a basis to B of $10,000 and a fair market value of $20,000). Partner...
A, B, C, & D (all individuals) form a general partnership in which they each have...
A, B, C, & D (all individuals) form a general partnership in which they each have an equal interest in capital and profits. All the partners and the partnership are cash method taxpayers. In exchange for their respective partnership interest, each partner transfers the following assets, all of which have been held more than 2 years. PartnerAssetsAdjusted BasisFair Market Value ALand $30,000$70,000 Goodwill$0$30,000 BEquipment(S 1245 gain) $25,000$45,000 Installment note from The sale of land $20,000$25,000 Inventory$5,000$30,000 CBuilding$25,000$60,000 Land$25,000$10,000 Receivables for...
The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $...
The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $ 50,000 Robbins, Capital 40,000 Prince is allocated 70 percent of all profits and losses with the remaining 30 percent assigned to Robbins after interest of 6 percent is given to each partner based on beginning capital balances. On January 2, 2018, Jeffrey invests $25,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction,...
Mary and Carol each contribute $50,000 to their newly formed general partnership (each partner is required...
Mary and Carol each contribute $50,000 to their newly formed general partnership (each partner is required to restore any deficit in the partner’s capital account upon liquidation of the partnership). The partnership borrows $900,000 on a non-recourse basis and buys a $1,000,000 building. The building generates $100,000 of depreciation a year for ten years, and the partnership has no other items of income or loss. The partners agree to allocate all losses equally until their capital accounts are zero; after...
Partners A and B form a partnership where each receive a 50% interest in capital and...
Partners A and B form a partnership where each receive a 50% interest in capital and profits. Partner A contributes cash of $25,000 and land valued at $25,000. Partner A has a basis in the land of $20,000 and has held it for two years. Partner B contributes equipment (with a basis to B of $15,000 and a fair market value of $30,000) and inventory (with a basis to B of $10,000 and a fair market value of $20,000). Partner...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT