Alex (A), Bebeto (B), and Carol (C) decide to start a lawn mowing business together andform a partnership. A invests $105,000, B invests $175,000, and C invests $280,000.They agree to share the profits in the same ratio as their investments.a. What is the ratio of their investments?Express in lowest termsb. If A's profit was $29,000 in the first year, calculate B's profits and C's profits.SAVE PROGRESSSUBMIT ASSIGNK20acer立 c. In the second year, their total profit was $160,000. How much would each of themreceive from this total profit?A's share:Round to the nearest centB's share:Round to the nearest centC's share:Round to the nearest cent->SAVE PROGRESSSUBMITASS耳acerA F7F8 F9F10 F11 E12F6PrtScImpr. êcr,PauseBreakNumlkScr Lk

CALCULATION OF RATIO OF THEIR INVESTMENT : INVESTMENT A = $105,000 , B = $175,000 , C = $280,000…

Alex (A), Bebeto (B), and Carol (C) decide to start a lawn mowing business together and form a partnership. A invests $105,000, B invests $175,000, and C invests $280,000. They agree to share the profits in the same ratio as their investments. a. What is the ratio of their investments? Express in lowest terms b. If A's profit was $29,000 in the first year, calculate B's profits and C's profits. ->

Alex (A), Bebeto (B), and Carol (C) decide to start a lawn mowing business together and form a partnership. A invests $105,000, B invests $175,000, and C invests $280,000. They agree to share the profits in the same ratio as their investments. a. What is the ratio of their investments? Express in lowest terms b. If A's profit was $29,000 in the first year, calculate B's profits and C's profits. ->

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

The partnership of Michelle, Amal, and Maureen has done well. The three partners have shared profits and losses in a 1:3 ratio, with capital balances of $60,000 each. Maureen wants to retire and withdraw. Prepare a schedule showing how the cost should be divided if Amal and Michelle decide to pay Maureen $70,000 for retirement of her capital account and the new agreement will share profits and losses 50:50.
Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. During its first year, the partnership earned $160,000. Prepare calculations showing how the $160,000 income is allocated under each separate plan for sharing income and loss. 1. The partners did not agree on a plan and therefore share income equally. 2. The partners agreed to share income and loss in proportion to their initial investments. 3. The partners agreed to share income by giving a $50,000 per year salary allowance to Ramer, a $40,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally.
Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of $67,300 and $31,800, respectively. With the consent of Bailey, Sandra buys one-half of Abby's interest for $43,200. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership? a. $31,800 b. $33,650 c. $43,200 d. $67,300
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
how would I calculate this problem knowing they have a loss? The partnership of Chase and Chloe shares profits and losses. Chase gets 76% and Chloe gets the remainder, after Chloe receives a $37,983 salary. If the loss for the year is $5,960, what is Chloe's total share of the profits and losses?
three partners, John, Jim, and Alice form a partnership. John invests $27,500; Jim invests $10,700, and Alice invests $8,400. In addition, Jim performs specific management functions for which he is paid $2,000 from the partnership proceeds. if the partnership earns $176,000, how much will jim receive?
Maria and Javier are the equal partners in MarJa, a partnership that is a qualified trade or business. In the current year, Marja had $328,200 of ordinary income after reporting $393,840 in guaranteed payments to Maria and Javier for their services to MarJa ($196,920 each). a. What is Maria's and Javier's qualified business income? b. What is Maria's and Javier's qualified business income if MarJa had $459,480 of ordinary income after reporting $196,920 in guaranteed payments to Maria and Javier ($98,460 each)?
Tanner and Teresa share income and losses in a 2:1 ratio (2/3 to Tanner and 1/3 to Teresa) after allowing for salaries of $39,900 to Tanner and $57,000 to Teresa. Net income of the partnership is $131,400. How should income be divided for Tanner and Teresa? Oa. Tanner, $62,900; Teresa, $68,500 Ob. Tanner, $58,900; Teresa, $72,500 Oc. Tanner, $57,900; Teresa, $73,500 Od. Tanner, $73,500; Teresa, $57,900
Beau Dawson and Willow McDonald formed a partnership, investing $276,000 and $92,000, respectively. Determine their participation in the year's net income of $136,000 under each of the following independent assumptions: a. No agreement concerning division of net income b. Divided into the ration of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3
9.You have a signed a partnership agreement distributing profits based on salary and investment with your college roommate. If profit for the first year is $45,000, how much will you receive based on the following: your original investment, $35,000; your partner's investment, $25,000; and you earn a $30,000 annual salary? LU 21-4(1) Total Invested Profit minus saleary You Partner
Phillip and Case are in the process of forming a partnership to import Belgian chocolates, to which Phillip will contribute one-third time and Case full time. They have discussed the following alternative plans for sharing profit and losses. a. In the ratio of their initial investments, which they have agreed will be $129,000 for Phillip and $301,000 for Case. b. In proportion to the time devoted to the business. c. A salary allowance of $6,000 per month to Case and the balance in accordance with their initial investment ratio. d. A $6,000 per month salary allowance to Case, 10% Interest on their initial investments, and the balance equally. The partners expect the business to generate profit as follows: Year 1, $103,000 loss; Year 2, $153,000 profit; and Year 3, $253,000 profit Required: Complete a schedule for each of the four plans being considered by showing how the partnership profit or loss for each year would be allocated to the partners. (Enter all amounts as positive value.…