.On December 31, 2019, A and B have capital balances of P400,000 and P320,000, respectively. On April 1, 2020, A invested an additional P400,000 while she withdrew P100,000 at the beginning of the 4th quarter. B also made an additional investment of P300,000 and withdrew P20,000 on May 1. A is the managing partner and will receive a bonus equal to 10% of reported net income. Both partners shall receive 10% interest on their beginning capital, after which, any remainder shall be divided in the ratio of capital at the end of the period. The net income of the partnership for 2020 after tax is P600,000. How much is the share of A in the 2020 net income of the partnership?
.On December 31, 2019, A and B have capital balances of P400,000 and P320,000, respectively. On April 1, 2020, A invested an additional P400,000 while she withdrew P100,000 at the beginning of the 4th quarter. B also made an additional investment of P300,000 and withdrew P20,000 on May 1. A is the managing partner and will receive a bonus equal to 10% of reported net income. Both partners shall receive 10% interest on their beginning capital, after which, any remainder shall be divided in the ratio of capital at the end of the period. The net income of the partnership for 2020 after tax is P600,000. How much is the share of A in the 2020 net income of the partnership?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
.On December 31, 2019, A and B have capital balances of P400,000 and P320,000, respectively. On April 1, 2020, A invested an additional P400,000 while she withdrew P100,000 at the beginning of the 4th quarter. B also made an additional investment of P300,000 and withdrew P20,000 on May 1. A is the managing partner and will receive a bonus equal to 10% of reported net income. Both partners shall receive 10% interest on their beginning capital, after which, any remainder shall be divided in the ratio of capital at the end of the period. The net income of the
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education