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Hw.58.
Mercedes a calendar year tax payer is a 40% general partner in a calendar year cash basis partnership. For the current year department should receive 160,000 gross revenues from services rendered and paid the following amounts: we expense 28,500 salary to employees 53 800 guaranteed payment to Mercedes 33,300 cash distributions to partner 18,000 payment for accounting services 7200. Mercedes share of income from the partnership for the current year is
A. 33300
B. 40980
C. 14880
D. 48180
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- The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: Jones, the managing partner, receives a bonus equal to 15 percent of the business’s profit. Each partner receives 14 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2021 were as follows: Jones $ 100,000 King 200,000 Lane 300,000 The partnership earned $48,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners. (Loss amounts should be indicated with a minus sign.)Item Nos. 11 and 12 are based on the following information: The partnership contract of partners L and M provides that L, the managing partner is allowed a bonus of 20% of the profit after taxes. The partnership is subject to an income tax rate of 35% of the profit. During 200C, the partnership earned profit before taxes of P 113,000. 11. If the bonus is based on the profit after taxes but before bonus, how much is the bonus of L? а. Р 13,000. P 14,500. С. b. P 13,250. d. P 14,690.Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net income of $40,000 is allocated to Xavier? 21. a. $20,000 b. $22,000 c. $32,000 d. $0 Moderate OBJ: LO: 12-02 DIF: PTS: 1 ANS: B KEY: Bloom's: Application NAT: BUSPROG: Analytic
- The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,500, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land ($1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses (Negative amounts should be indicated by a minus sign.) Problem 20-61 Part a (Algo) a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss). Req A1 Complete this question by entering your answers in the tabs below. Req A2 $ 80,700 6,900 (28,200) (18,100) (17,200) (4,600) Description Separately Stated Items on Schedule K-1: §1231 gains Cash charitable contributions Compute Gary's share of separately stated…Marvin, Gerwin, Froilan formed a partnership on July 1,2020 with the following investments: Marvin 200,000 Gerwin 300,000 Froilan 450,000 The partnership agreement stated that profits and losses are to be shared equally by the partners after consideration for the following: 1. Annual salaries to partners: 60,000 for Marvin, 48,000 for Gerwin and 36,000 for Froilan. 2. 10% interest on average capital 3. 10% of net profit after salaries and interest as bonus to Marvin as the managing partner. On October 1, 2020, Marvin made additional investment of 60,000, on the residual profit after salaries and Froilan invested 30,000 on Dec. 1,2020. Assuming the result of operation is a loss of P50,000, how much is the share of each partner to the partnership loss?Fill in the blnnks: Tim and Michelle have decided to form a partnership with a 60/40 partnership interest ratio. Tim contributes P7500 cash and merchandise invetory with a market value of P1500. a. Tim, Capital will be credited in the amount of b. Michelle's investment should be c. After accounting for the total investments of Tim and Michelle, the total assets of the partnership amounts to
- The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: • Jones, the managing partner, receives a bonus equal to 15 percent of the business's profit. • Each partner receives 10 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2021 were as follows: Jones King Lane The partnership earned $84,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners. (Loss amounts should be indicated with a minus sign.) Net income Bonus Interest $ 190,000 380,000 570,000 Remainder to allocate Total allocation Jones King Lane Total13. S. Tayag and T. Urios formed a partnership. The partnership agreement provides for annual salary allowances of 110,000 for Tayag and 90,000 for Urios. The partners share profits equally and losses in 60:40 ratio. The partnership had an income of 180,000 for the year before any allowance to partners. What amount should be credited to each partner's capital account as a result of the distribution of the partnership income? Tayag Urios А. 90,000 90,000 В. 96,000 84,000 С. 98,000 82,000 D. 100,000 80,000 14. The Vina – Wanda partnership was formed on January 3, 2020. Under the partnership agreement, each partner has an equal initial capital balance accounted for under the bonus method. Partnership net income or loss is allocated 60% to Vina and 40% to Wanda. To form the partnership, Vina originally contributed assets costing 150,000 with a fair value of 300,000 on Janaury 3, 2020, while Wanda contributed 100,000 in cash. Withdrawals by the partners during the fiscal year totaled 15,000…John Prado and Ayana Nicks formed a partnership annual salary allowance each is 10000 and 28000 respectively interest of 5% on each partner capital balance on Jan 1 any remaining net income divided equallu Prado and nick had 20000 and 50000 respectively. in their jan 1 capital balance. net income for the year was 30000 how much net income should be distributed to rado and nick
- 4. A and B formed a partnership. The partnership agreement stipulates the following: • Monthly salaries of P6,000 for A and P2,000 for B. • 20% bonus to A, after deductions for salary, interest, and bonus. 10% interest on the weighted average capital of B. Any remaining amount is shared equally. The partnership's records show the following: Revenues Expenses (including salary, interest, and bonus) Profit 150,000 (120,000) 30,000 n this message ose of the indiw ender and may not v reflect the views f Philippine Cultural College Page | 2 The movements in B's capital account are as follows: В. Сарital 60,000 beg. Aug. 1 withdrawal 30,000| 20,000 Mar. 31 additional investment Oct. 1 additional investment Dec. 31 additional investment 40,000 10,000 100,00 end. How much is the share of B in the partnership profit? a. 93,000 b. 52,250 с. 46,250 d. 45,000The following are the partnership agreement between partners Baby Love & Honey Sweet for their partnership’s profit distribution:A. Each partners shall be entitled for an annual salary of P50,000 each.B. 15% Bonus of partnership profits after salaries to Honey Sweet being a managing partner.C. 20% interest is given to both partners based on average capital ratio.D. Residual profit and loss shall be distributed on the ratio 2:2The ledgers of their capital balances are shown below: Baby Love Debit: July 1. P20,000 Credit: Jan 1. P80,000 Oct 1. P40,000 Honey Sweet Debit: Oct 1. P10,000 Credit: Jan 1. P120,000 May 1. 30,000 The partnership profit for the year is P150,000 before distribution to partners Required: 1. Prepare a Schedule for Profit Distribution.2. Journal entry to record the distribution of profit to partners.ASSUMING GOCE & OLIVEROS PARTNERSHIP are partners IN TRADE. the 2020 financial records. SERVICE REVENUE 4,490,000; COST OF SERVICE 1,610,000; OPEX 800,000 THE PROFIT AND LOSS IS DISTRIBUTED 55% GOCE AND 45% OLIVEROS. GOCE IS ALSO ENGAGED IN BUSINESS WITH THE FOLLOWING DATA FOR THE YEAR GROSS SALES 2,500,000; COST OF SALES 1,250,000 AND OPEX 550,000. HOW MUCH IS THE INCOME TAX PAYABLE OF GOCE & OLIVEROS PARTNERSHIP? DISTRIBUTABLE SHARE OF OLIVEROS? FINAL TAX OF GOCE? FINAL TAX OF OLIVEROS? Use Philippine tax lax
