Required informationUse the following information for the Exercises below.[The following information applies to the questions displayed below.)Turner, Roth, and Lowe are partners who share income and loss in a 2:3:5 ratio (in percents: Turner, 20%; Roth, 30%;and Lowe, 50% ). The partners decide to liquidate the partnership. Immediately before liquidation, the partnershipbalance sheet shows total assets, $138,000; total liabilities, $88,000; Turner, Capital, $3,500; Roth, Capital, $14,500;and Lowe, Capital, $32,000. Cash received from selling the assets was sufficient to repay all but $33,000 to thecreditors.Exercise 12-14 Liquidation of limited partnership LO P5Assume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners and Lowe is a limitedpartner. How much should each partner contribute to cover the remaining capital deficiency of $33,000? (Do not round intermediatecalculations. Losses and deficits amounts to be deducted shoiid be entered with a minus sign.)Complete this question by entering your answers in the tabs below.Amount to beSale of Assets Repaid toPartnershipAssume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners and Lowe is a limitedpartner. How much should each partner contribute to cover the remaining capital deficiency of $33,0007 (Do not round intermediatecalculations, Losses and deficits amounts to be deducted should be entered with a minus sign.)Amount to beRepaid toPartnershipSale of AssetsAssume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners aris a limited partner. Calculate sale of assets. (Do not round intermediate calculations. Losses and deficits amounts todeducted should be entered with a minus sign.)Total book value of assetsTotal liabilities before liquidationTotal liabilities remaining after paying proceeds of asset sales to creditorsCash proceeds from sale of assetsGain on sale of assets$ 138,00088,00033,000%2455,000$ 83,000Sale of AssetsAmount to be Repaid to Partnership >Amount to beSale of AssetsRepaid toPartnershipAssume that the Turner, Roth, nd Lowe partnership is a limited partnership. Turner and Roth are general partners and Lowepartner. How much should eacipartner contribute to cover the remaining capital deficiency of $33,000? (Do not round intermcalculations. Losses and deficits amounts to be deducted should be entered with a minus sign.)Calculate Gain (Loss) on Sale of AssetsTurnerRothLoweTotalInitial capital balancesAllocation of gains (losses)Capital balances after gains (losses)$3,500$ 14,5005/10$32,000 $ 50,0002/103/1050,000Allocation of Lowe's Deficit to Turner and RothTurnerRothLoweTotalAllocation of Lowe's deficit to Turner andRoth2/53/5(9,500)Capital balances after deficit allocationAmount to be repaid to partnership$ (16,900)$ (16,100)%24$ (33,000)$ (33,000)< Sale of AssetsAmount to be Repaid to Partnership

Answered: Image /qna-images/answer/f1c88eef-cd80-4c4d-bb31-98d2a87fd5d4.jpg

Calculate Gain (Loss) on Sale of Assets Turner Roth Lowe Total Initial capital balances 3,500 $ 14,500 5/10 $ 32,000 $ 50,000 Allocation of gains (losses) 2/10 3/10 Capital balances after gains (losses) 2. 50,000 Allocation of Lowe's Deficit to Turner and Roth Turner Roth Lowe Total Allocation of Lowe's deficit to Turner and Roth 2/5 3/5 (9,500) Capital balances after deficit allocation $ (16,900) $ (16,100) %24 0$ (33,000) Amount to be repaid to partnership $ (33,000)

Calculate Gain (Loss) on Sale of Assets Turner Roth Lowe Total Initial capital balances 3,500 $ 14,500 5/10 $ 32,000 $ 50,000 Allocation of gains (losses) 2/10 3/10 Capital balances after gains (losses) 2. 50,000 Allocation of Lowe's Deficit to Turner and Roth Turner Roth Lowe Total Allocation of Lowe's deficit to Turner and Roth 2/5 3/5 (9,500) Capital balances after deficit allocation $ (16,900) $ (16,100) %24 0$ (33,000) Amount to be repaid to partnership $ (33,000)

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

Exercise 16-5 (Algo) Taxable income given; calculate deferred tax liability from book-tax difference; 100% depreciation in the year of purchase; financial statement effects [LO16-2] Ayres Services acquired an asset for $80 million in 2024. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). Ayers deducted 100% of the asset's cost for income tax reporting in 2024. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2024, 2025, 2026, and 2027 are as follows: 2024 ($ in millions) 2025 2026 2027 Pretax accounting income $ 370 $ 390 Depreciation on the income statement 20 20 $ 405 20 Depreciation on the tax return (80) (0) (0) $ 440 20 (8) $ 310 $ 410 $ 425 $ 460 Taxable income Required: For December 31 of each year, determine (a) the cumulative temporary book-tex difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account.…
Identy the type(s) of gain or loss that would be recognized on the following asset sales as capital, Section 1231, Ordinary, Section 1245 recapture, Section 291 recapture, or Section 125 unrecaptred gain. a. gain on the sale of stock by an individual ________________ b. gain on the sale of a building used for 15 years by a corporation_____________ c. gain on the sale of a machine used by a business for four years sold at a price less that its original cost____________________ d. gain on the sales of inventory______________________ e. loss on the sale of equipmment used in a business for three years_________ f. gain on the sale of a machine used by a business for 11 months__________ g. Loss on th factoring of receivables______________ h. gain on sales of a building used by a sole proprietorship for eight years in excess of its original cost._______________________
8.15 Analyzing Disclosures Regarding Fixed Assets. Exhibit 8.21 presents selected financial statement data for three chemical companies: Monsanto Company, Olin Corporation, and NewMarket Corporation. (NewMarket was formed from a merger of Ethyl Corporation and Afton Chemical Corporation.) Exhibit 8.21 Three Chemical Companies' Selected Financial Statement Data on Depreciable Assets (amounts in millions) (Problem 8.15) New Market Corporation Monsanto Olin Company Q Q Depreciable assets at cost: Beginning of year End of year Accumulated depreciation: Beginning of year $752 $4,611 $1,796 777 4,604 1,826 584 2,331 1,301 End of year 611 2,517 1,348 Net income 33 267 55 Depreciation expense 27 328 72 Deferred tax liability relating to depreciable assets: Beginning of year 13 267 83 End of year 9 256 96 Income tax rate 35% 35% 35% Depreciation method for financial reporting Straight-line Straight-line Straight-line Depreciation method for tax reporting Accelerated Accelerated Accelerated
The following information is available for Felix Company: Net income $300 Decrease in plant and equip. $40 Depreciation expense $20 Increase in deferred tax asset $5 Gain on sale of assets $35 Decrease in long-term debt $50 Increase in inventories Decrease in accounts payable $15 $25 What is cash flow from operating activities for Felix Company? Select one O A. $240 O B. $70 O C. $320 O D. $250
1. Excess of tax depreciation over book depreciation $ 208,600 2. Accrual, for book purposes, of estimated loss contingency frompending lawsuit that is expected to be settled in 2020. The losswill be deducted on the tax return when paid. ( 46,900 ) 3. Accrual method used for book purposes and installment methodused for tax purposes for an isolated installment sale of an investment. 224,500 $ 386,200 In analyzing the temporary differences, you find that $ 30,700 of the depreciation temporary difference will reverse in 2020, and $ 115,300 of the temporary difference due to the installment sale will reverse in 2020. The tax rate for all years is 20%.Indicate the manner in which deferred taxes should be presented on Sage Company’s December 31, 2019, balance sheet.
i need the answer quickly
3- Chapter 15, 16, and 17 Saved SEMECOmducation.com%252F#/activit Help Save 2 023642 For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income Permanent difference Temporary difference-depreciation Taxable income $ 290,000 (14,400) 275,600 (20,300) $ 255,300 Tringall's tax rate is 25% Assume that no estimated taxes have been paid. What should Tringall report as its deferred tax liability as of the end of its first year of operations? Multiple Choice 95.075 H 9:22 PM Near record 4) 4/14/2024 N M ? Alt Curi Page insert Backspace Enter 7
Decrease in plant and equipment $ Decrease in deferred tax asset $ Increase in accounts receivable $ Net Loss $ 122,865 587,458 15,487 65,892 109,520 215,877 Increase in inventory $ Decrease in short-term debt $ Net cash from financing activities Net cash from investing activities Net cash from operating activities
A-5
Interest expense Paid-in capital Accumulated depreciation Notes payable (long-term) Rent expense Merchandise inventory Accounts receivable Depreciation expense Land Retained earnings Cash Cost of goods sold Equipment Income tax expense Accounts payable Net sales $ 5,400 17,200 4,800 53,000 11,700 124,000 41,500 2,400 37,000 152,500 28,000 238,000 28,000 57,000 31,000 400,000 Required: a. Calculate the difference between current assets and current liabilities for Gary's TV at December 31, 2022. b. Calculate the total assets at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022. e. What was the average income tax rate for Gary's TV for 2022? f. If $27,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings?