10 Bagley invests personally owned equipment, which originally cost $220,000 and has accumulated depreciation of $60,000 in the Bagley and Eggers partnership. Both partners agree that the fair value of the equipment was $120,000. The entry made by the partnership to record Bagley's investment should be 220,000 $ A) Equipment Accumulated Depreciation-Equipment Bagley, Capital 160,000 $ B) Equipment Bagley, Capital C) Equipment $ 120,000 $uber 40,000 $ 60,000 Loss on Purchase of Equipment Accumulated Depreciation-Equipment Bagley, Capital D) Equipment 120,000 Bagley, Capital E) None of the above 11 Partners Gary and Elaine have agreed to share profits and losses in an 80:20 ratio respectively, after Gary is allowed a salary allowance of $30,000 and Elaine is allowed a salary allowance of $15,000. If the partnership had net income of $30,000 for 2017, Elaine's share of the income would be A) $ 15,000 B) $ 12,000 C) 18,000 D) $ 3,000 E) None of the above $ 60,000 160,000 160,000 $ 220,000 $ 120,000 $ $ $

10 Bagley invests personally owned equipment, which originally cost $220,000 and has accumulated depreciation of $60,000 in the Bagley and Eggers partnership. Both partners agree that the fair value of the equipment was $120,000. The entry made by the partnership to record Bagley's investment should be 220,000 $ A) Equipment Accumulated Depreciation-Equipment Bagley, Capital 160,000 $ B) Equipment Bagley, Capital C) Equipment $ 120,000 $uber 40,000 $ 60,000 Loss on Purchase of Equipment Accumulated Depreciation-Equipment Bagley, Capital D) Equipment 120,000 Bagley, Capital E) None of the above 11 Partners Gary and Elaine have agreed to share profits and losses in an 80:20 ratio respectively, after Gary is allowed a salary allowance of $30,000 and Elaine is allowed a salary allowance of $15,000. If the partnership had net income of $30,000 for 2017, Elaine's share of the income would be A) $ 15,000 B) $ 12,000 C) 18,000 D) $ 3,000 E) None of the above $ 60,000 160,000 160,000 $ 220,000 $ 120,000 $ $ $

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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