Justin and Kyle are equal (50%) partners. The partnership’s balance sheet (including FMV) is below.  At the end of the year, Justin sold his partnership interest to Leslie for $15,000.   Assets   FMV     Book Tax Debt Book Tax Cash 5,000 5,000 5,000       Inventory A 10,000 10,000 10,000       Inventory B 10,000              6,000 6,000 Capital     Stock 5,000 11,000 11,000 Justin 16,000 16,000         Kyle 16,000 16,000   What are the tax consequences to Justin of the sale? How much of the gain/loss is capital/ordinary?   Assuming the partnership has a section 754 election, what is the amount of the section 743(b) adjustment? How is it allocated among the partnership’s assets?

On 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.

Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at 50%. Chris contributes $60,000 to the partnership for a 1/3 share. What amount should the partnership record as an individual bonus to each of the old partners? A. $10,000 B. $7,000 C. $0 D. $5,000

The following balances as at October 31, 2016 for the Partnership of Wilma, Xelyn and Yska were as follows: Cash P80,000 Non-cash assets 640,000 Liabilities 24,000 Wilma, Capital 204,000 Xelyn, Capital 132,000 Yska, Capital 360,000 Wilma has decided to retire from the partnership on October 31. The estimated profit to October 31 is P160,000. Wilma will be paid P276,800 for the Partnership interest inclusive of her loan which is to be paid in full. Their profit and loss ratio is 3:4:3 to Wilma, Xelyn and Yska, respectively. Required: Compute for the Xelyn, and Yska Capital and Total Partners Equity after retirement using Bonus Method and Revaluation Method.

MYRNA and NORMA are partners sharing profits and losses in the ratio of 60% and 40%, respectively. The partnership balance sheet at August 30, 2020 follows: Cash P 27,000   Accounts payable P 30,000 Other assets 266,000 MYRNA, Loan 13,000 NORMA, Loan 20,000 MYRNA, capital 180,000 NORMA, capital 90,000 Total P 313,000 Total P 313,000 At this date, OLGA was admitted as a partner for a consideration of P97,500 cash for a 40% interest in capital and in profits. 1. Assume OLGA is admitted by purchase of 40% each of the original partners’ interest, determine how the P97,500 will be apportioned to MYRNA and NORMA   *The answer is MYRNA, P65,700 and NORMA, P31,800. Please help with the solution.

The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages:         Tiger (40%) $ 125,000 Phil (20%)   95,000 Ernie (40%)   110,000     Each of the following questions should be viewed independently.   If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. If Sergio invests $140,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the goodwill method is used.

The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages:         Tiger (50%) $ 160,000 Phil (40%)   130,000 Ernie (10%)   145,000     Each of the following questions should be viewed independently.   If Sergio invests $190,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used. If Sergio invests $140,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used. If Sergio invests $150,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used. dont give image based solution thnx

Sadie and Sam share income equally. For the current year, the partnership net income is $40,000. Sadie made withdrawals of $14,000 and Sam made withdrawals of $15,000. At the beginning of the year, the capital account balances were: Sadie, Capital, $42,000; Sam, Capital, $58,000. Sam's capital account balance at the end of the year is   Question 7 options:   $78,000   $43,000   $63,000   $93,000

Liam, Michael and Noah own interests in the LMN Partnership. Their current capital account balances are as follows: Liam $450,000 Michael 350,000 Noah 200,000 Partnership income is shared in a 1:5:4 ratio. Olivia buys a 20% interest in the partnership by acquiring 20% of each existing partner's interest, paying the three partners a total of $300,000. Partnership identifiable net assets are currently reported at amounts approximating fair value. Using the recognition of implied goodwill approach, implied goodwill is: Select one: a. $500,000 b. $800,000 c. $300,000 d. $100,000

The following capital balances as of October 31 , 2016 for the Partnership of Wilma , Xelyn and Yska were as follows : Wilma , Capital 204,000 Xelyn , Capital 132,000 Yska , Capital 360,000 Wilma has decided to retire from the partnership on October 31. Their profit and loss ratio is 3/4 / 3 to Wilma , Xelyn and Yska , respectively . The partnership will purchase the interest of Wilma by paying 234,000. Questions 1. How much is the TOTAL Goodwill? 2. What amount of capital will be credited to Xelyn? 3. What amount of capital will be credited to Yska? 4. How much is Total Adjusted Capital after Wilma has retired ?