Ozzello Property Management is organized as a partnership. The owners, Lorenzo, Erwin, and Michelle, share profits and losses 30:30:40. Ozzello has the following results for the current year: Management fees $211,400 Long-term gain on sale of investments 21,700 Short-term loss on sale of investments 3,000 Salaries paid to employees 65,700 Office rent 43,300 Office expenses 20,100 What is the business income of each partner?

Ozzello Property Management is organized as a partnership. The owners, Lorenzo, Erwin, and Michelle, share profits and losses 30:30:40. Ozzello has the following results for the current year: Management fees $211,400 Long-term gain on sale of investments 21,700 Short-term loss on sale of investments 3,000 Salaries paid to employees 65,700 Office rent 43,300 Office expenses 20,100 What is the business income of each partner?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In a partnership business, Jack has an ownership of 60% and Teresa has an ownership of 40%. For growing the business, Jack contributed $7,000 and Teresa contributed $3,000 on July 1. Which of the following is true of this scenario? A Only the total contribution of $10,000 will be recorded B Individual contribution of $7,000 by Jack and $3,000 by Teresa will be recorded C Either the total contribution of $10,000 or the contribution in the ownership ratio will be recorded D 60% of Jack's contribution and 40% of Teresa's contribution will be recorded
! Required information [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700, 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 $ 85,000 6,350 (33,500) (16,800) (12,100) (5,000) 5,000 (5,100) Note: Negative amounts should be indicated by a minus sign. c. What do you believe Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1 should be, assuming G&P is an LLC and Gary spends 2,000 hours per year working there full time? Self-employment income (loss)
GFH Decorators is a calendar year partnership that specializes in home interior design. GFH Decorators income and expenses for the current year are provided in the exhibit. Based on the information provided, complete the Schedule K-1 for Fred, a 30 percent partner, in the table below. Enter all amounts as positive whole values. If an amount is zero, enter a zero (0). 1. Ordinary business income (loss) 2. MACRS depreciation 3. Guaranteed payments 4. Ordinary dividends 5. Net short term capital gan (loss) 6. Net long term capital gan (loss) GFH Decorators Current Year Income and Expenses: -Fee revenue $600,000 - Dividend income $ 2,000 - Capital gain (long-term) $10,000 - Charitable contributions ($ 500) - Employee salaries ($75,000) - Guaranteed payments to partners* ($75,000) - MACRS depreciation ($3,000) * Guaranteed payments paid to each partner based on ownership percentage
Lewis, Clark, and Sacagewea have income ratios of 5:3:2 and capital balances of $36,040, $32,860, and $29,680, respectively. Noncash assets are sold at a gain and allocated to the partners. After creditors are paid, $109,180 of cash is available for distribution to the partners. How much cash should be paid to Clark?
For Industry H, determine each partner's share of income assuming the partners agree to share income by giving a $67,700 per year salary allowance to Price, a $126,100 per year salary allowance to Waterhouse, a $113,700 per year salary allowance to Coopers, a 15% interest on their initial capital investments, and the remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Important! Be sure to click the correct Industry at the top of the dashboard. Net income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of each partner Initial partnership investments Net income Allocation of Partnership Income Price Total net income Total 0 Waterhouse $ $ PRICE, WATERHOUSE, AND COOPERS Statement of Partners' Equity For Year Ended December 31 Price Coopers 0 0 Waterhouse 0 0 0 $ For Industry H, prepare a statement of partners' equity for the…
The Fig & Olive Co. reports net income of $25,100. Interest allowances are Fig $3,400 and Olive $6,200; partner salary allowances are Fig $18,300 and Olive $10,300 and the remainder is shared equally. Indicate the division of net income to each partner. (If an amount reduces the account balance then enter with a negative sign preceding the number eg.-15,000 or parentheses eg. (15,000).J Salary allowance Interest allowance on partners' capital Total salaries and interest Remaining income Total division of net income $ Fig Account Titles and Explanation Division of Net Income $ Debit Olive Prepare the entry to distribute the net income. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) $ Credit Total
Want answer
Required information [The following information applies to the questions displayed below.] The TimpRiders LP has operated a motorcycle dealership for a number of years. Amir is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca works full time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Amir and Francesca had bases of $11,900 and $4,100, respectively, and the partnership did not have any liabilities. During the current year, the partnership reported the following results from operations: Net sales Cost of goods sold Operating expenses Short-term capital loss Tax-exempt interest §1231 gain $ 684,000 511,000 186,000 2,800 3,100 7,100 On the last day of the year, the partnership distributed $4,100 each to Amir and Francesca. Required: a. What outside basis do Amir and Francesca have in their partnership interests at the end of the year? b. How…
2. The partnership of David White and Paul Wacker incurred net income of $40,000 for the current year. David had invested $30,000 and Paul had invested $45,000. Calculate he distribution share to each partner if profits are divided in the ratio of:a. Investmentsb. 3:1
Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Assets Liabilities and Capital $ 49,000 Cash Adams, Loan Other Assets Total Assets 11,800 218,000 Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities $ 278,800 $ 45,500 64,900 88,500 79,900 $ 278,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. During the liquidation process for the APB Partnership, the following events occurred: 1. During the first month of liquidation, noncash assets with a book value of $89,500 were sold for $68,000, and $22,500 of the liabilities were paid. 2. During the second month, the remaining noncash assets were sold for $78,000. The loan receivable from Adams was collected, and the rest of the creditors were paid. 3. Cash is distributed to partners at the end of each month.…