On July 1, 2021, Clark, Kent and Louis are partners with capital balances of P 450,000, P380,000 and P 450,000 respectively. They share profits and losses according to their capital balances. Louis died on this date. They have determined that the net income earned as of this date is P 460,000. However, inventories in the amount of P 30,000 has been considered worthless but was not considered in the determination of net income. Income earned for the year ended December 31, 2021 is P 650,000. The articles of partnership declared that in the case of death of a partner, the remaining partners may continue to use the demised partner’s fund until the end of the year provided he/she will be paid 24% interest from the date of his/her date. What amount will be paid to the estate of Louis?

On July 1, 2021, Clark, Kent and Louis are partners with capital balances of P 450,000, P380,000 and P 450,000 respectively. They share profits and losses according to their capital balances. Louis died on this date. They have determined that the net income earned as of this date is P 460,000. However, inventories in the amount of P 30,000 has been considered worthless but was not considered in the determination of net income. Income earned for the year ended December 31, 2021 is P 650,000. The articles of partnership declared that in the case of death of a partner, the remaining partners may continue to use the demised partner’s fund until the end of the year provided he/she will be paid 24% interest from the date of his/her date. What amount will be paid to the estate of Louis?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 58P

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