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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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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