Mr. Calma is a partner of CAT Partnership, a general professional partnership, and shares25% of the profit. The gross receipts of the partnership amounted to P 10,000,000 for taxableyear 2021. The recorded cost of service and operating expenses were P 2,750,000 andP 1,500,000, respectively.7.How much is the net income for distribution to partners?A. P 2,750,000 B. P 2,900,000C. P 4,350,000D. P 5,750,0008. How much is the income tax due of the partnership?A. POB. P 870,000C. P 1,087,000D. P 1,305,0009. How much is the income tax due of Mr. Calma?A. P 86,250B. P 130,000C. P 216,250D. P 321,250

7. Net Income for Distribution to partners D. P 5,750,000 is correct option. Explanation: Gross…

. How much is the net income for distribution to partners? A. P 2,750,000 B. P 2,900,000 C. P 4,350,000 How much is the income tax due of the partnership? B. P 870,000 A. PO C. P 1,087,000 . How much is the income tax due of Mr. Calma? A. P 86,250 B. P 130,000 C. P 216,250 D. P 5,750,000 D. P 1,305,000 D. P 321,250

. How much is the net income for distribution to partners? A. P 2,750,000 B. P 2,900,000 C. P 4,350,000 How much is the income tax due of the partnership? B. P 870,000 A. PO C. P 1,087,000 . How much is the income tax due of Mr. Calma? A. P 86,250 B. P 130,000 C. P 216,250 D. P 5,750,000 D. P 1,305,000 D. P 321,250

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is the after tax accumulation using formaul for partnership and corperation Parameters Investor ordinary tax rate 0.40 Investor capital gains rate 0.20 Corporate tax rate 0.21 Pretax return 0.10 Investment life (years) 10.00 Amount invested $100 After tax accumlation, using formulas Partnership a. Corporation b.
John has a $24,000 basis in his partnership interest. He receives a current distribution of $4,000 cash, accounts receivable ($12,000 A/B. $16.000 FMV) and land ($3,000 A/B, $8.000 FMV) The basis of his partnership interest following the distribution is Selected Answer: Ⓒa. 50 Answers: 0.50 b. $5,000 c. $1,000 d. ($4,000) D
Xavier and Yolanda have original investments of $51,500 and $100,100, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $27,200 and $29,600, respectively; and the remainder to be divided equally. How much of the net income of $114, 400 is allocated to Xavier? a. $37,500 b. $61, 368 с. $51,140 d. $27,200
Franco and Jason share income and losses in a 2:1 (2/3 to Franco and 1/3 to Jason) ratio after allowing for salaries of $18,000 and $37,500, respectively. If the partnership suffers a $15,000 loss, by how much would Jason's capital account increase? a.$26,500 b.$32,500 c.$14,000 d.$37,500
1. A partnership has four equal partners who share profits and losses in accordance with their respective interests. It has $400,000 in taxable income but doesn't distribute any cash to the partners. a. What amount of income will the partnership report on its tax return? None. There is no business income tax on a partnership. b. What amount of the partnership's taxable income will be subject to tax at the partnership level? c. Will each partner recognize taxable income from their interest in the partnership? If so, how much? d. If ABC was a corporation with four equal owners, how would this change your answers in parts (a)- (c)?
Douglas pays Selena $45,700 for her 25% interest in a partnership with net assets of $127,900. Following this transaction, Douglas's capital account should have a credit balance of a. $45,700 b. $127,900 c. $11,425 d. $31,975
Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net income of $40,000 is allocated to Xavier? 21. a. $20,000 b. $22,000 c. $32,000 d. $0 Moderate OBJ: LO: 12-02 DIF: PTS: 1 ANS: B KEY: Bloom's: Application NAT: BUSPROG: Analytic
Fill in the blnnks: Tim and Michelle have decided to form a partnership with a 60/40 partnership interest ratio. Tim contributes P7500 cash and merchandise invetory with a market value of P1500. a. Tim, Capital will be credited in the amount of b. Michelle's investment should be c. After accounting for the total investments of Tim and Michelle, the total assets of the partnership amounts to
13. S. Tayag and T. Urios formed a partnership. The partnership agreement provides for annual salary allowances of 110,000 for Tayag and 90,000 for Urios. The partners share profits equally and losses in 60:40 ratio. The partnership had an income of 180,000 for the year before any allowance to partners. What amount should be credited to each partner's capital account as a result of the distribution of the partnership income? Tayag Urios А. 90,000 90,000 В. 96,000 84,000 С. 98,000 82,000 D. 100,000 80,000 14. The Vina – Wanda partnership was formed on January 3, 2020. Under the partnership agreement, each partner has an equal initial capital balance accounted for under the bonus method. Partnership net income or loss is allocated 60% to Vina and 40% to Wanda. To form the partnership, Vina originally contributed assets costing 150,000 with a fair value of 300,000 on Janaury 3, 2020, while Wanda contributed 100,000 in cash. Withdrawals by the partners during the fiscal year totaled 15,000…
Hw.58. Mercedes a calendar year tax payer is a 40% general partner in a calendar year cash basis partnership. For the current year department should receive 160,000 gross revenues from services rendered and paid the following amounts: we expense 28,500 salary to employees 53 800 guaranteed payment to Mercedes 33,300 cash distributions to partner 18,000 payment for accounting services 7200. Mercedes share of income from the partnership for the current year is A. 33300 B. 40980 C. 14880 D. 48180
4.3 The Capital of bah and Rah are as follows: Bah 25, 000 Rah 15,000 They share profits equally. Kuh will buy 1/5 the interest and earnings of Bah for 8,000 and Dah will buy 1/2 the interest and earnings of Rah for 7,000. REQUIRED: a. Entry to record the admission of the new partners. b. What is the interest of each partner in the new partnership? c. What is the new profit and loss sharing ratio?
PA1. LO 15.3The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partner's capital account. Tatum's capital account balance is $50,000 and Brook's is $60,000.