The E.N.D. partnership has the following capital balances as of the end of the current year:Pineda $ 200,000Adams 180,000Fergie 170,000Gomez 160,000Total capital $710,000Answer each of the following independent questions:Required:Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $194,000 basedon the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance ofthe remaining three partners?Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $310,000 basedon the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of theremaining three partners?Note: Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.

Given: Capital balance as of the end of the current year:Pineda= $200000Adams= $180000Fergie=…

Answered: The E.N.D. partnership has the…

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

A, B and C are partners with the following P/L ratio and capital balances: A (60%) P100,000; B(30%) P60,000; and C (10%) P20,000. Case 5: C withdraws from the partnership and sells his interest to B for P30,000. Provide the journal entry and determine the capital balances and P/L ratio of the remaining partners after C’s withdrawal.
The net income of the Chris and Browning partnership is $440000. The partnership agreement specifies that Chris and Brow a salary allowance of $125000 and $171000, respectively. The partnership agreement also specifies an interest allowrance of capital balances at the beginning of the year. Each partner had a beginning capital balance of $ 294000. Any remaining net inc net loss is shared equally. What is Chris's share of the $ 440000 net income? $197000 $154400 $167600 $114600 Attempts: 0 of 1 used
John has a $24,000 basis in his partnership interest. He receives a current distribution of $4,000 cash, accounts receivable ($12,000 A/B. $16.000 FMV) and land ($3,000 A/B, $8.000 FMV) The basis of his partnership interest following the distribution is Selected Answer: Ⓒa. 50 Answers: 0.50 b. $5,000 c. $1,000 d. ($4,000) D
Partner Bob’s basis in his partnership interest is $50,000. What gain or loss is recognized, and what are Bob’s basis in the property received and his basis in his partnership interest, if the partnership makes the following independent proportionate nonliquidating distributions? Partnership distributes $40,000 in cash. Partnership distributes $60,000 cash. Partnership distributes $40,000 cash and accrual basis accounts receivable with a $20,000 basis and value.
I need fast
Shirley contributes property to a new partnership with a value of $1,000,000 and a basis of $400,000 that is secured by a $500,000 nonrecourse note. Under the terms of the partnership agreement, Shirley will be allocated 25% of all profits. The partnership agreement also states that "excess nonrecourse liabilities" will be allocated to partners according to profit ratios. How much of the nonrecourse liability will be allocated to Shirley? please dont provide answer in images thank you
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 270,000 Adams 240,000 Fergie 230,000 Gomez 220,000 Total capital $ 960,000 Answer each of the following independent questions: Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $269,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $355,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)
"Partner A, Partner B, Partner C, and Partner D have decided to terminate their partnership. The partnership's balance sheet at the time they decide to wind up is as follows: Cash 100000, Noncash Assets 300000, Accounts Payable 100000, Partner A Capital 25000, Partner B Capital 110000, Partner C Capital 100000,Partner D Capital 65000. During the winding up of the partnership, the other assets are sold for $150,000 and the accounts payable are paid. Partner B and Partner C are personally solvent, but Partner A and Partner D are personally insolvent. The partners share profits and losses in the ratio of 4:2:1:3. what amount will be distributed to Partner B upon liquidation of the partnership?" 11667 68333 110000 80000
Milton has a basis in his partnership of $300,000, including his $80,000 share of partnership liabilities. At the end of the current year the partnership pays off the liabilities and makes a proportionate current distribution to its partners. Milton receives a parcel of land (partnership basis of $120,000 and FMV of $135,000) and inventory (partnership basis of $160,000 and FMV of $180,000). Following the distribution what is Milton's basis in the inventory? I'm not sure if it's 160,000 or not
The SSC, a cash-method partnership, has a balance sheet that includes the following assets on December 31 of the current year: Basis FMV $ 180,000 $ 180,000 0 Cash Accounts receivable 60,000 120,000 $ 270,000 $360,000 Susan, a one-third partner, has an adjusted basis of $90,000 for her partnership interest. If Susan sells her entire partnership interest to Emma for $100,000 cash, what is the amount and character of Susan's gain or loss from the sale? Group of answer choices $10,000 capital gain $10,000 ordinary income $20,000 ordinary income; $10,000 capital gain $10,000 capital loss; $20,000 ordinary income Land Total 90,000
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda 160,000 Adams 140,000 Fergie 130,000 Gomez 120,000 Answer each A. Assume that the partners and losses 3:3:2:2,respectively. Fergie retires and is paid 151,000 based on the terms of the orginal partnership agreement. If the Goodwill method is used;what is the capital of the remaining three partners? B. Assume that the partners share profit and losses 4:3:2:1, respectively. Peneda retires and is paid 305,000 based on the terms of the orginal partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round intermediate calculations. Round to the nearest amounts. A. Pineda capital Balance__________ Adams capital Balance__________ Gomez capital Balance__________ B. Pineda capital Balance__________ Adams capital Balance__________ Gomez capital Balance__________
Amy and Mitchell are equal partners in the accrual basis AM Partnership.At the beginning of the current year, Amys capital account has a balance of $300,000, and the partnership has recourse debts of $200,000 payable to unrelated parties. Assume that all partnership recourse debt is shared equally between the partners. The following information about AMs operations for the current year is obtained from the partnerships records.Ordinary income$400,000Interest income$4,000Long-term capital loss$6,000Short-term capital gain$12,000Charitable contribution$4,000Cash distribution to Amy$20,000Assume that year-end partnership debt payable to unrelated parties is $140,000. If all transactions are reflected in her beginning capital and basis in the same manner, what is Amy basis in the partnership interest:At the beginning of the year?At the end of the year?What income, gains, losses, and deductions does Amy report on her income tax return?Based on the information provided, what other…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS