Z and Y formed ZY Partnership in 2016. Z contributed $300,000 and Y contributed S200,000 to the partnership capital. They share profits and losses of the partnership in the ratio of their capital contribution. The partners are entitled to 15% interest on the capitals contributed by them The partnership had $50,000 of liabilities at the beginning of 2017. During 2017, it borrowed $120,000 from Puma Bank on nonrecourse basis. For the year 2017, the partnership incurred an ordinary loss of $200,000. How much loss will Z and Y recognize for 2017? a. Z - $120,000; Y - 80,000 b. Z - $165.000: Y - $110.000 c. Z - $192,000; Y - $128,000 d. Z- $222.000: Y - $148.000
Z and Y formed ZY Partnership in 2016. Z contributed $300,000 and Y contributed S200,000 to the partnership capital. They share profits and losses of the partnership in the ratio of their capital contribution. The partners are entitled to 15% interest on the capitals contributed by them The partnership had $50,000 of liabilities at the beginning of 2017. During 2017, it borrowed $120,000 from Puma Bank on nonrecourse basis. For the year 2017, the partnership incurred an ordinary loss of $200,000. How much loss will Z and Y recognize for 2017? a. Z - $120,000; Y - 80,000 b. Z - $165.000: Y - $110.000 c. Z - $192,000; Y - $128,000 d. Z- $222.000: Y - $148.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Z and Y formed ZY Partnership in 2016. Z contributed $300,000 and Y contributed
S200,000 to the partnership capital. They share profits and losses of the partnership in the
ratio of their capital contribution. The partners are entitled to 15% interest on the capitals
contributed by them
The partnership had $50,000 of liabilities at the beginning of 2017. During 2017, it
borrowed $120,000 from Puma Bank on nonrecourse basis. For the year 2017, the
partnership incurred an ordinary loss of $200,000.
How much loss will Z and Y recognize for 2017?
a. Z - $120,000; Y - 80,000
b. Z - $165.000: Y - $110.000
c. Z - $192,000; Y - $128,000
d. Z- $222.000: Y - $148.000
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