The partnership agreement called for the following in the allocation of partnership profits and losses:a. Salaries of P48,000 and P36,000 would be allocated to A and B, respectively.b. Interest of 8% on average capital balances.c. B will receive a bonus of 10% on all partnership billings in excess of P300,000.d. Any remaining profits or losses will be allocated 60/40 to A and B, respectively.Required:1. Determine the distribution of partnership income assuming the partnership income is P85,000and partnership billings amounted to P400,000.2. Determine distribution of partnership net income of P165,000 on billings of P400,000. Make-up assignmentPartnership operationsInstruction: Prepare the answers and solution in written form using a clean paper (e.g. Yellow pad, bondpaper, notebook etc.) and submit a snapshot in CANVAS.A and B organized AB partnership on 1/1/2020. The following entries were made into their capitalaccounts during 2019:ADrCr1/120,0004/15,00010/15,000BDrCr1/140,0003/110,0009/110,00011/110,000

Partnership is a business in which two or more than more persons join hands to carry out common…

Answered: Required: 1. Determine the distribution…

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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Required information [The following information applies to the questions displayed below.] Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance sheet of the MS Partnership at year-end is as follows: Cash Land Inventory Mary Scott Basis $ 60 60 72 $ 192 $ 96 96 $ 192 Fair Market Value $ 60 180 60 $ 300 $150 150 $300 At the end of the current year, Kari will receive a one-third capital interest only in exchange for services rendered. Kari's interest will not be subject to a substantial risk of forfeiture, and the costs for the type of services she provided are typically not capitalized by the partnership. For the current year, the income and expenses from operations are equal. Consequently, the only tax consequences for the year are those relating to the admission of Kari to the partnership. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.)
The RU Partnership has two partners, Renee and Uri. Each partner's basis in his or her partnership interest is $16,000 before any distribution. The partnership distributes $26,000 cash to Renee and $6,000 cash to Uri. Read the requirements. Requirement a. Assuming a current distribution, determine for each partner (1) gain or loss recognized and (2) basis in the partnership interest after the distribution. (Complete all input fields. Enter a $0 for any zero balances. Enter a loss with a minus sign or parentheses.) Renee Uri (1) Gain (loss) recognized (2) Basis in the partnership interest after the distribution Requirements a. Assuming a current distribution, determine for each partner (1) gain or loss recognized and (2) basis in the partnership interest after the distribution. b. Assuming a liquidating distribution, determine each partner's gain or loss recognized.
In the ABC partnership (to which D seeks admittance), the capital balances of A, B, and C, who share income in the ratio of 5:3:2, are: A. capital P1,000,000 B,capital 600,000 C,capital 400,000 How much is the estimated amount to be invested by D for a 20% interest?
Which statement is CORRECT? Select one: A. Partners' salary is an allowable expenses B. Tax returns are due in April the following year C. A partnership is considered as a separate entity from the partners D. Unabsorbed capital allowance can be claimed against the future income of LLP
In the ABC partnership (to which D seeks admittance), the capital balances of A, B, and C, who share income in the ratio of 5:3:2, are: A, capital P1,000,000 B, capital 600,000 C, capital 400,000 1.How much is the estimated amount to be invested by D for a 20% interest?
Kk129.
On December 31, 2020, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 1:6:3: Current Assets Noncurrent Assets 1,000,000 2,000,000 Total Liabilities A, Capital B, Capital C. Capital 600,000 900,000 800,000 700,000 On January 1, 2021, D is admitted to the partnership by purchasing 40% of the capital interest of B at a price of P500,000. • What is the capital balance of B after the admission of D on January 1, 2021? a. 540,000 b. 480,000 c. 420,000 d. 300,000
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50 In which order are partnership assets distributed to the partners? Group of answer choices Profits, capital balances, loans Capital balances, loans, profits Loans, profits, capital balances Loans, capital balances, profits
X and Y are partners and have beginning capital balances of P 360,000 and P 600,000 respectively. Partnership profits and losses are allocated as follows salaries of P 160,000 and P 200,000 to X and Y, respectively, 10% interest on their beginning capital balances, any remaining profit is divided equally Partnership profit of P 600,000 is allocated as follows: A. X =P 300,000,V-P 300,000 B. X =P.280,000,Y-P320,000 C. X =P 2600. V - P * 332000 D. X = P * 192000Y = P * 40B, 0
Q)1A) Salim and Rashid form a partnership, investing OR 80,000 and OR 120,000, respectively. Required: Determine their shares of net income: Net income is OR 60,000. The first OR 30,000 is shared on the basis of partner capital balances. The next OR 20,000 is based on partner services, with Salim getting 40% and Rashid 60%. The remainder is shared equally. B) How can partnership profits and losses be allocated.
Assume that partners A and B share all profits and losses in the ratio of 3:2. Partner B has $100,000 credited to her Partnership Capital account when net income is allocated at year‐end. The amount of partnership net income for the year is ??? Why is the answer = $250,000?

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Required: 1. Determine the distribution of partnership income assuming the partnership income is P85,000 and partnership billings amounted to P400,000. 2. Determine distribution of partnership net income of P165,000 on billings of P400,000.