Dividing partnership incomeCarmelo Fernandez and Bobby Morett formed a partnership, investing $120,000 and $180,000, respectively.Determine their participation in the year's net income of $275,000 under each of the following independent assumptions:a. No agreement concerning division of net income.b. Divided in the ratio of original capital investment.c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3.d. Salary allowances of $40,000 and $45,000, respectively, and the balance divided equally.e. Allowance of interest at the rate of 6% on original investments, salary allowances of $40,000 and $45,000, respectively, and the remainder divided equally.FernandezMorett$ 137,500 ✓a.b.C.d.e.$ 137,500 ✓$ 110,000✓$$FeedbackXX$$165,000✓XX✓ Check My WorkSet up a column for each partner and a total column.a. Determine the distribution of income and losses in the absence of a partnership agreement.b. Use the ratio of the partner's original capital investment to distribute the net income.c. Use the stated percentage to determine the interest allowance. Distribute the remaining income based on the stated ratio.d. Assign each partner's stated salary allowance. Distribute the remaining income based on the stated ratio.e. Use the stated percentage to determine the interest allowance. Assign each partner's salary allowance. Distribute the remaining income based on the stated ratio.

Partnership: A formal agreement between two or more people to run a business together and split the…

Answered: and Bobby Morett formed a Determine…

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. Prepare a multistep income statement and determine each of the following subtotals for 20x8 using the information above. Apply a 40% effective tax rate where applicable:
TyroneCo, an S corporation with a positive E & P balance, reports gross receipts for the year totaling $533,000 (of which $266,500 is passive investment income). Expenditures directly connected to the production of the passive investment income total $106,600. Compute Tyrone's passive investment income tax. If required, round your final answer to the nearest dollar.
The capital accounts of Lorraine Grecco and Carrie Rosenfeld have balances of $64,000 and $99,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On March 10, Grecco invested an additional $11,000. During the year, Grecco and Rosenfeld withdrew $43,000 and $53,000, respectively, and net income for the year was $84,000. Revenues were $654,000, and expenses were $570,000. The articles of partnership make no reference to the division of net income. a. Journalize the entry to close the revenues and expenses. If an amount box does not require an entry, leave it blank.
An exempt organization, reports unrelated business income of $290,000 and unrelated business expenses of $45,000. In addition, the organization has positive adjustments of $88,000. Assume a 21% corporate income tax rate. Calculate the amount of unrelated business income tax. (Is 1,000 standard deduction applicable?)
1. Pioneer College, a private educational institution, has presented the following data for the year: Gross Income, related activities Gross Income, unrelated activities (except rental income) Rental income (gross of 5% WT) Expenses, related activities Expenses, unrelated activities Dividend income from a domestic corporation Quarterly income tax paid for the first three quarters Compute the income tax payable. P5,000,000 5,000,000 2,000,000 2,000,000 3,000,000 100,000 500,000
30. Nagpapanggap Inc. had a pretax accounting income of P2,400,000 while the taxable net income before charitable contribution is P2,560,000 during the year. Below are items seen on the records of Nagpapanggap Inc.: * Gain from settlement of life insurance of officers and employees where the corporation is named the beneficiary, P50,000; * Dividend revenue received from a Manhid Corp., a domestic corporation, P78,000; * Dividend revenue received from a Pusong Bato Co., a foreign corporation, P56,000;
Maria Reid has determined that the value of her assets is $64,000 and the value of her debts is $23,000. The difference between these two is $41,000. The $41,000 could be referred to as her: Group of answer choices nest egg. total assets. adjusted assets. debt equity. net worth.
Subject: accounting
The Warner Corporation has gross income of $560,000. It has business expenses of $325,000, a capital loss of $20,000, and $2,500 of interest income on temporary investments. What is the corporation's taxable income?
The capital accounts of Angel Alvarez and Emma Allison have balances of $47,000 and $73,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On March 10, Alvarez invested an additional $8,000. During the year, Alvarez and Allison withdrew $32,000 and $39,000, respectively, and net income for the year was $62,000. Revenues were $483,000, and expenses were $421,000. The articles of partnership make no referenceto the division of net income.a. Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts.b. Prepare a statement of partnership equity for the current year for the partnership of Alvarez and Allison.
Petra and Tasia, partners, divide profits and losses on the basis of average capitals. Capital accounts for the year endedDecember 31, 20x2, are shown below. The net profit for 20x2 is P270,000. (Changes in capitals during the first half of a monthare regarded as effective as of the beginning of the month; changes during the second half of a month are regarded aseffective as of the beginning of the following month.) The share of Petra on the 20x2 profit is:a. P114,500b. P154,500c. P115,500d. P125,260

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