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- Juan contributes marketable securities to a partnership. The book value of the securities is $7,000 and they have a current market value of $10,000. What amount should the partnership record in Juans Capital account due to this contribution? A. $10,000 B. $7,000 C. $3,000 D. none of the aboveThe partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
- LO.2 In the current year, Bill Parker (54 Oak Drive, St. Paul, MN 55164) is considering making an investment of 60,000 in Best Choice Partnership. The prospectus provided by Bills financial planner indicates that the partnership investment is not a passive activity and that Bills share of the entitys loss in the current year will likely be 40,000, whereas his share of the partnership loss next year will probably be 25,000. Write a letter to Bill in which you indicate how the losses would be treated for tax purposes in the current year and the following year.Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at 50%. Chris contributes $30,000 to the partnership for a 1/3 share. What amount should Thandies capital balance in the partnership be? A. $60,000 B. $50,000 C. $45,000 D. $30,000On February 3, 2016 Sam Singh invested $90,000 cash for a 1/3 interest in a newly formed partnership. Prepare the journal entry to record the transaction.
- 12 A partner invests into a partnership a building with a $25,000 carrying value and $40,000 fair market value. The related payable of $12,500 is assumed by the partnership. The entry to record the investment in partnership is: mortgage A) Building $ 25,000 Mortgage Payable Capital B) Building 40,000 Mortgage Payable Capital C) Capital 40,000 Mortgage Payable Building D) Capital $ 25,000 Mortgage Payable Building E) None of the above 13 Partners R and S receive a salary allowance of $3,000 and $7,000, respectively, and share the remainder equally. If the company earned $4,000 during the period, the entry to close the income or loss into their capital accounts is: $ 10,000 A) Income Summary R, Capital S, Capital $amos 4,000 B) Income Summary S, Capital $ 14,000 C) Income Summary R, Capital S, Capital D) Income Summary R, Capital S, Capital E) None of the above $ $ $ $ $ $ $ $ $ $ 12,500 12,500 12,500 27,500 $ $ 6,000 12,500 27,500 $ 12,500 12,500 $ $ LA LA $ $ 3,000 7,000 4,000 7,000…Please help mePart 4 In the ABC partnership, the capital balances of Albert, Bert, and Connell, who share income in the ratio of 5:3:2, are: Albert Bert Connell $ 500,000 300,000 200,000 a) Daniel wishes to be admitted to the partnership and have a 20 percent interest. The partnership agrees to admit Daniel with a $275,000 investment and Goodwill to be recorded to prior partners. What is the journal entry needed to admit Daniel? Show calculations. b) If, instead, Daniel invests $250,000 for a 20 percent interest, resulting in total capital of the partnership being $1,250,000. No Goodwill is recorded and any Bonus is applied to prior partners. What is the journal entry needed to admit Daniel? Show calculations. c) If, instead, Daniel pays $300,000 directly to Albert for a 20% interest in the partnership. Daniel is assigned his 20% ownership solely from Albert's capital account.
- 1QUESTION 2 Irfan and Laila agreed to form a partnership. Irfan contributed RM200,000 in cash and Laila contributed assets with a fair market value of RM400,000. The partnership, in its initial year, reported a net income of RM120,000. REQUIRED: Calculate the distribution of the first's year income to the partners under each of the following conditions: (a) Irfan and Laila agreed to share income and losses in a 3:2 ratio. (b) Irfan and Laila agreed to share income and losses in the ratio of their original investments. (c) Irfan and Laila agreed to share income and losses by allowing 10% interest on original investments and sharing any remainder equally.Please help me with all answers thanku