a) Paul, Betty and Rose are in partnership sharing profits in the ratio of 5:3:2. Rose is guaranteed a minimum share of profits of $10,000. Profits for the years ended 2016 & 2017 as follows: 31 Dec 2016 200,000 31 Dec 2017 42,000 Required: 1. Calculate the share of profits to each partner for 2016 and 2017. 2. Describe the tax treatment of a partnership. Kindly assist me to solve this question
a) Paul, Betty and Rose are in partnership sharing profits in the ratio of 5:3:2. Rose is guaranteed a minimum share of profits of $10,000. Profits for the years ended 2016 & 2017 as follows: 31 Dec 2016 200,000 31 Dec 2017 42,000 Required: 1. Calculate the share of profits to each partner for 2016 and 2017. 2. Describe the tax treatment of a partnership. Kindly assist me to solve this question
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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a) Paul, Betty and Rose are in partnership sharing profits in the ratio of 5:3:2. Rose is guaranteed a minimum share of profits of $10,000.
Profits for the years ended 2016 & 2017 as follows:
31 Dec 2016 200,000
31 Dec 2017 42,000
Required:
1. Calculate the share of profits to each partner for 2016 and 2017.
2. Describe the tax treatment of a partnership.
Kindly assist me to solve this question
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