**Educational Text: Partnership Distribution Analysis**---**The Taurin Partnership's Asset Overview:**The Taurin Partnership (a calendar-year-end entity) has reported the following assets as of December 31 of the current year:| Asset | Tax Basis | FMV ||----------------------|-----------|------------|| Cash | $39,520 | $39,520 || Accounts Receivable | $16,840 | $33,680 || Inventory | $87,980 | $129,680 || **Totals** | **$155,280** | **$202,880** |**Asset Distribution:**On December 31, Taurin distributes $16,840 of cash, $11,227 (FMV) of accounts receivable, and $43,220 (FMV) of inventory to Emma (a one-third partner) to terminate her partnership interest. Emma's basis in her partnership interest immediately prior to the distribution is $44,063.**Problem 21-46 Part c (Algorithm):****Required:****1.** If Emma's basis before the distribution was $60,788 rather than $44,063, what is Emma's recognized gain or loss?**2.** What is her basis in the distributed assets?Complete this question by entering your answers in the tabs below.---**Worksheet for Distributed Assets:**(Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)| Asset | Basis ||-----------------------|-------------|| Cash | || Accounts Receivable | || Inventory | |This exercise aims to enhance students' understanding of partnership distributions and the calculations of partner basis adjustments in distributed assets.---**Graph/Diagram Explanation:**The table above shows the asset distribution and the tax basis versus the fair market value (FMV) of each asset. The totals indicate the entire value before and after the distribution to Emma.- **Tax Basis** represents the value of the asset for tax purposes.- **FMV (Fair Market Value)** represents the current market value of the asset.The problem involves calculating the recognized gain or loss based on a different initial basis and distributing assets based on their values.---End of Educational Text.

The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year: Cash Accounts receivable Inventory Totals Problem 21-46 Part c (Algo) Tax Basis On December 31, Taurin distributes $16,840 of cash, $11,227 (FMV) of accounts receivable, and $43,220 (FMV) of Inventory to Emma (a one-third partner) in termination of her partnership Interest. Emma's basis in her partnership Interest Immediately prior to the distribution is $44,063. $ 50,520 16,840 87,900 $ 155,260 Required C1 Required C2 #equired: 1. If Emma's basis before the distribution was $60,788 rather than $44,063, what is Emma's recognized gain or loss? 2. What is her basis in the distributed assets? FMV $ 50,520 33,680 129,660 $ 213,860 Complete this question by entering your answers in the tabs below. Cash Accounts receivable Inventory What is her basis in the distributed assets? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Basis

The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year: Cash Accounts receivable Inventory Totals Problem 21-46 Part c (Algo) Tax Basis On December 31, Taurin distributes $16,840 of cash, $11,227 (FMV) of accounts receivable, and $43,220 (FMV) of Inventory to Emma (a one-third partner) in termination of her partnership Interest. Emma's basis in her partnership Interest Immediately prior to the distribution is $44,063. $ 50,520 16,840 87,900 $ 155,260 Required C1 Required C2 #equired: 1. If Emma's basis before the distribution was $60,788 rather than $44,063, what is Emma's recognized gain or loss? 2. What is her basis in the distributed assets? FMV $ 50,520 33,680 129,660 $ 213,860 Complete this question by entering your answers in the tabs below. Cash Accounts receivable Inventory What is her basis in the distributed assets? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Basis

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

Prepare income statement for this question
NAME: SCORE: SECTION: PROFESSOR: Problem #12 Admission by Investment of Assets Magdaraog and Mercado are partners in Magdaraog and Mercado Partnership with capital balances of P550,000 and P350.000, respectively: they share income and loss in the ratio 1:3, respectively. The partners are considering the admission of San Pedro. Required: Prepare the entries to record the admission of San Pedro under each of the following independent situations: 1. San Pedro invested P100,000 cash in the partnership for a one-tenth interest. The net assets of the partnership are fairly valued. 2. San Pedro invested P140,000 cash in the partnership for a one-eight interest. Assets of the partnership are fairly valued except for equipment, which is undervalued by P80,000. Net assets of the partnership are to be revalued and San Pedro is to be admitted. 3. San Pedro is to receive a one-tenth interest in the partnership upon investing P180,000 cash. Net assets of the partnership are fairly valued. San Pedro…
Pass necessary rectifying journal entries for the following omissions committed while preparing Profit and Loss Appropriation Account. You are also required to show your workings clearly. (i) A, B and C were partners sharing profits and losses equally. Their fixed capitals were A Rs. 4,00,000; B Rs. 5,00,000 and C Rs. 6,00,000. The partnership deed provided that interest on partners’ capital will be allowed @ 10% per annum. The same was omitted. (ii) P, Q and R were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their partnership deed provided that interest on partners’ drawings will be charged @ 18% p.a. Interest on the partners’ drawings was Rs. 1,000, Rs. 500 and Rs. 2,000 respectively. The same was omitted.
Problem #17 Rules for the Distribution of Profits or Losses
Need journal entries
Problem 1. Alucard and Chou organized their partnership on 01/01/19. The following entries were made into their capital accounts during 2019. Required: If partnership profits for the year equaled P66,000, indicate the allocations between the partners under the following independent profit-sharing allocation conditions: Interest of 10% is allocated on weighted average capital balance and the remainder is divided equally. A salary of P9,000 will be allocated to Chou; 10% interest on ending capital is allocated to the partners; remainder is divided 60/40 to Alucard and Chou, respectively. Salaries are allocated to Alucard and Chou in the amount of P10,000 and P15,000, respectively and the remainder is allocated in the proportion to weighted average capital balances. A bonus of 10% of partnership profits after bonus is credited to Alucard, a salary of P35,000 is allocated to Chou, a P20,000 salary is allocated to Alucard, 10% interest on weighted capital is allocated, and remainder is…
s
2020.12.28 15:04 NAME: SCORE: SECTION: PROFESSOR: Problem #23 The condensed statement of financial position of the partnership of Buenaflor and Gangoso as of Dec. 31, 2019 showed the following: Total Assets P200,000 Total Liabilities 40,000 Buenaflor, Capital 80,000 Gangoso, Capital 80,000 On this date, the partnership was dissolved and its net assets transferred to a newly- formed corporation. The fair value of the assets was P24,000 more than the carrying value on the firm's books. Each of the partners was issued 10,000 shares of the corporation's P1 par ordinary share. Required: Prepare the journal entries in the books of the corporation.
Sagot din po dito?
pls answer asap tnx
developed in part a(3). etd 189fc64d53a0a6a71 PROBLEM C.11 Dividing Partnership Profit and LossLOC-10 Rothchild Furnishings, Inc., has three partners-Axle, Brandt, and Conrad. At the beginning of the current year their capital balances were: Axle, $180,000; Brandt, $140,000; and Conrad, $80,000. The partnership agreement provides that partners shall receive salary allowances as follows: Axle, $10,000; Brandt, $50,000; and Conrad, $28,000. The partners shall also be allowed 12 percent interest annually on their capital balances. Residual profit or loss is to be divided: Axle, one-half; Brandt, one-third; and Conrad, one-sixth. Instructions Prepare separate schedules showing how income will be divided among the three partners in each of the following cases. The figure given in each case is the annual partnership net income or loss to be allocated among the partners. Round calculations to the nearest dollar. a. Income of $526,000. b. Income of $95,000. c. Loss of $32,000. PROBLEM C.12 Who…
Multiple Choice The condensed statement of financial position of Ricablanca, Tac-an and Dimalanta partnership as of March 31, 2019 follows: ents to P 28,000 265,000 P293,000 Assets efore t Cash Non-cash Assets Total P 48,000 Liabilities 95,000 80,000 Ricablanca, Capital Tac-an, Capital Dimalanta, Capital Total 70,000 P293,000 S. Profit and loss ratio is 50:25:25, respectively. The partners voted to dissolve the partnership and liquidate by selling assets in installments. P70,000 was realized on the first cash sale of other non-cash assets which has a book value of P150,000. After settlement with creditors, all cash available was distributed to partners. How much cash did Dimalanta receive? P10,500 b. P20,000 a. C. P32,500 d. P21,250 2. The statement of financial position of the partnership of Balino, Andres and Ignacio who share in the profits and losses in the ratio of 5:3:2, respectively, is as follows: Assets Liabilities and Capital P 30,000 Liabilities Balino, Capital Andres,…