Question 2Tropical Fruit Partnership is a calendar year generalpartnership with the following current yearinformation:Operating lossLiabilities:Note payable, Big Bank555,000Note payable, Pineapple (individual) 370,000On January 1 Coconut bought 60% of Tropical FruitPartnership for $832,500. How much of theoperating loss may Coconut deduct currently?Assume the excess business loss limitation does notapply.$1,202,500$1,480,000$(5,550,000)$1,387,500O $1,054,500

Question 2 Tropical Fruit Partnership is a calendar year general partnership with the following current year information: Operating loss Liabilities: Note payable, Big Bank 555,000 Note payable, Pineapple (individual) 370,000 $(5,550,000) On January 1 Coconut bought 60% of Tropical Fruit Partnership for $832,500. How much of the operating loss may Coconut deduct currently? Assume the excess business loss limitation does not apply. $1,202,500 $1,480,000

Question 2 Tropical Fruit Partnership is a calendar year general partnership with the following current year information: Operating loss Liabilities: Note payable, Big Bank 555,000 Note payable, Pineapple (individual) 370,000 $(5,550,000) On January 1 Coconut bought 60% of Tropical Fruit Partnership for $832,500. How much of the operating loss may Coconut deduct currently? Assume the excess business loss limitation does not apply. $1,202,500 $1,480,000

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

question 82
question 83
Exercise 3-7. Distribution of Net Loss to partners Carmela and Ferdinand formed a partnership on January respectively. The partnership reported a net loss of P80,000. 1, 2023, with initial investments of P300,000 and P500,000, The partnership agreement provides that profit or loss shall be distributed accordingly: • Monthly salary of P10,000 and P5,000 respectively for Carmela and Ferdinand, . 10% interest on partners' original capital. . 20% bonus to Carmela based on net income before interest, and salary. •The remainder is shared in the ratio of 3:2 respectively. Required: Determine the share of Carmela and Ferdinand in the net loss.
Helping tags: Accounting...WILL UPVOTE, just please help me answer the questions. Thank you!
28. Show solution in good accounting form
ss
8 A, B and C formed a partnership on January 1, 2007 with investments of $200,000, $300,000 and $400,000 respectively. The profit and loss sharing ratio is 20% for A, 30% for B and 50% for C. For division of income, they have agreed: 1. interest of 10% of beginning capital balance each year 2. annual compensation of $10,000 for B. The partnership earns $500,000 in its first year of operation. Each partner draws $1000 a month. What is B’s share of the net income What is C’s capital balance at the end of the first year
PROBLEM 1 (FTG REVISED) VAL, KHU, and LAWRENCE are partners in VAKHULAW CO. sharing profits in the ratio of 3:3:2. Investments are P600,000, P400,000, and P300,000, respectively. The partners agreed to admit TYONG-GO on the following basis: TYÖNG-GO is to pay VAL, P400,000 for 1/2 of VAL's interest; TYONG-GO is also to invest P300,000 in the business. The partners agreed that revaluation of assets must be determined based on the agreed capital. The total capital of the partnership is to be P2,000,000, of which TYONG-GO's interest is to be P500,000 upon admission. REQUIRED: 1. Prepare a statement of partners equity that will show the capital balances of VAL, KHU, LAWRENCE and TYONG-GO after admission of TYONG-GÒ, respectively. Present your solution and the statement in good form. 2. Prepare the entries upon admission of TYONG-GO.
Problem 6-20 modified B is invests $75,000 in BC Partnership (not a passive activity). In Year 1, B's share of the entity's loss is $50,000. In Year 2, his share of the partnership loss next year is $35,000. Bill's deductible loss from the activity in Year 1 and Year 2? At-risk amount Suspended (at-risk rules) Initial $75,000
19 ALPHA AND BETA Alpha and Beta are in partnership. They share profits equally after Alpha has been allowed a salary of $4,000 capital accounts. The trial balance of the partnership at 31 December 20X8 before adjusting for any of the items below, is as follows: pa. No interest is charged on drawings or allowed on current accounts or Dr Cr So00 So00 Capital Alpha Beta 30 25 Current Alpha Beta 3 Drawings Alpha Beta 4 5. Sales 200 Inventory 1 Jan 20X8 30 Purchases 103 Operating expenses 64 Loan Beta (10%) Gamma (10%) 10 20 Land and buildings 60 Plant and machinery cost 70 depreciation to 31 December 20X8 40 Receivables 40 Payables 33 Bank 11 - 376 376 (i) Closing inventory on hand at 31 December was S24,000. On 31 December Alpha and Beta agree to take their manager, Gamma, into (ii) partnership. Gamma's loan account balance is to be transferred to a capital account as at 31 December. It is agreed that in future Alpha, Beta and Gamma will all share profits equally. Alpha will be allowed a…
2022 tax rules
show solution