The taxable income of Nicole and Nicolas is;a. P 96,250 and P 68,750, respectivelyb. 146,250 and 168,750, respectivelyc. 101,250 and 33,750, respectively13,000 and 94,000, respectivelyd. Nicole and Nicolas, CPAS, a partnership of Certified Public Accountants, had gross receipts ofP220,000 and expenses of P85,000 in 2018;Share in profit and loss ratioIncome from other businessExpensesAmount withdrawn from partnership_Filing statusDependent childrenNicole75%P 125,00080,00030,000MarriedNoneNicolas25%P 125,000190,00012,500Unmarried2

Amount withdrawn by partners from business is not taxable and treated as drawings or loan. Interest…

Answered: Nicole and Nicolas, CPAS, a partnership…

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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Subject: acounting
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Required information [The following information applies to the questions displayed below.] Ramer and Knox began a partnership by investing $88,000 and $132,000, respectively. During its first year, the partnership earned $255,000. Prepare calculations showing how the $255,000 income is allocated under each separate plan for sharing income and loss. 3. The partners agreed to share income by giving a $69,000 per year salary allowance to Ramer, a $43,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $255,000. Note: Enter all allowances as positive values. Enter losses as negative values. Net Income Salary allowances Interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income Shares of the partners Ramer Saved Knox Total
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