Answered: On March 1, 2020, Alpha, Beta, and… | bartleby

SWFT Comprehensive Vol 2020

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 34P

See similar textbooks

Related questions

Question

100%

Subject general accounting question

On March 1, 2020, Alpha, Beta, and Gamma formed an equal
partnership. Alpha and Beta each contributed $120,000 in cash.
Gamma contributed land with a basis of $80,000 and a fair
market value of $120,000. On May 15, 2020, the partnership sold
the land for $150,000.
What is the amount of the gain to be allocated to Gamma?
a. $30,000
b. $10,000
c. $50,000
d. $70,000
e. $23,333

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Blurred answer

Similar questions

1. On May 1, 2019, Gonzaga and Balace formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Gonzaga contributed a parcel of land that cost P10,000. Balace contributed P40,000 cash. The land was sold for P18,000 on May 1,2019, immediately after formation of the partnership. What amount should be recorded in Gonzaga's capital account on formation of the partnership? a. P15,000 b. P17,400 C. P10,000 d. P18,000
Scenario Henry, Hunter, and Harry formed a partnership (Widget Unlimited) on January 1, 2020. Henry and Hunter each contributed $200,000 and Harry transferred a building he had purchased two years earlier to the partnership. The building had a tax basis of $150,000 and was appraised at $300,000. The building was also encumbered with a $100,000 mortgage. The partners plan to use the building to manufacture, distribute, and sell green and purple widgets. Harry will work full time operating the business for which he will receive guaranteed payments (not included in expenses) of $5,000 per month. Henry and Hunter will devote less than twelve days a year to the business. At the end of 2020, Widgets Unlimited had made $6,000 in mortgage principal payments. The partnership agreement specifies that Henry, Hunter, and Harry will share in income/loss in the ratio of 3:3:4. For the first year of operation, the partnership records disclose the following information: Sales revenue $820,000 Cost of…
provide correct answer
1. On December 1, 2020, Antipolo and Bunao formed a partnership, agreeing to share for profits and losses in the ratio of 2:3, respectively. Antipolo invested a parcel of land that cost him P134,375. Bunao invested P161,250 cash. The land was s old for P268,750 on the same date, three hours after formation of the partnership. How much should be the capital balance of Antipolo right after formation? a. P134,375 b. P161,250 C. P322,500 d. P268,750
Please help me
On May 1, 2021, Cobb and Mott formed a partnership and agreed to share profits and losses in the ratio for 3:7, respectively. Cobb contributed a parcel of land that cost him P 10,000. Mott contributed P 40,000 cash. The land was sold for P 18,000 on May 1, 2021, immediately after formation of the partnership. What amount should be recorded in Cobb's capital account on formation of the partnership? A 10,000 В 18,000 C 15,000 17,400
On March 1, 2020, JM and KK formed a partnership with each contributing the following assets (see attached image) 1. The building is subject to mortgage loan of P800,000, which is to be assumed by the partnership agreement provides that JM and KK share profits and losses 30% and 70%, respectively. On March 1, 2020 the balance in KK's capital account should be: A. 3,700,000 C. 2,900,000B. 3,045,000 D. 2,485,000 2. Assume that the mortgage loan is not assumed by the partnership and the partners agree to withdraw or contribute additional cash to make their capital balances agree with their profit and loss ratio. On March 1, how much cash should be invested/(withdrawn) by KK? A. (1,215,000) C. (655,000)B. (415,000) D. 655,000
On April 1, 2020, A, B and C formed a partnership by combining their separate business proprietorships. A contributed cash of P 200,000. B contributed property with a carrying amount of P144,000, original cost of P160,000, and a fair value of P320,000. The partnership accepted responsibility for the P140,000 mortgage attached to the property. C contributed equipment with a carrying amount of P120,000, original cost of P300,000 and fair market value of P220,000. The partnership agreement specifies that profits and losses are to be shared equally. Assuming capital is based on their profit and loss agreement, how much is the implied bonus?
On May 1, 2017, BJ and Paige formed a partnership. Each contributed assets with the following agreed-upon valuations. BJ Paige Cash 80,000 20,000 Equipment 50,000 60,000 Building 0 240,000 Loan payable 0 100,000
Blossom, Bubbles and Buttercup formed a partnership to which Blossom contributed a parcel of land with an acquisition cost of P 25,000. Bubbles contributed P50,000 cash and Buttercup P 75,000 cash. The land has a fair value of P 50,000 at the formation date. The total capital credit of the partnership should be * a. P 150,000 b. P 125,000 c. P 175,000 d. P 145,000
Red, White and Blue form a partnership on May 1, 2020. They agree that Red will contribute office equipment with a total fair value of P 40, 000; White will contribute delivery equipment with a fair value of P 80, 000; and Blue will contribute cash. If Blue want a one- third interest in the capital and profits, how much total partnership capital would be? * •60, 000 O :40, 000 O : 180, 000 O :120, 000
Assume the G&L partnership forms with cash contributions of $100,000 each from G and L. The partnership then borrows $800,000 on a nonrecourse loan and purchases a building on leased land for $ 1,000,000. Assume that the building is rented and that annual cash revenues equal cash expenses but depreciation of $50,000 per year results in a $50,000 annual loss. All items of income, loss, and deduction are shared equally. When is the first year that the partnership will record Partnership Minimum Gain ( PMG)? Please don't use any AI. It's strictly prohibited. Help me out asap Thanks

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Comprehensive Vol 2020

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SWFT Essntl Tax Individ/Bus Entities 2020

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SWFT Comprehensive Vol 2020

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SWFT Essntl Tax Individ/Bus Entities 2020

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SWFT Comprehensive Volume 2019

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SEE MORE TEXTBOOKS