Partnership It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio. The participation of partners in the net income of the year under various independent assumptions.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 12.3EX

To determine

Partnership

It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio.

The participation of partners in the net income of the year under various independent assumptions.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Dividing partnership income Carmelo Fernandez and Bobby Morett formed a partnership, investing $120,000 and $180,000, respectively. Determine their participation in the year's net income of $275,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $40,000 and $45,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $40,000 and $45,000, respectively, and the remainder divided equally. Fernandez Morett $ 137,500 ✓ a. b. C. d. e. $ 137,500 ✓ $ 110,000 ✓ $ $ Feedback X X $ $ 165,000 ✓ X X ✓ Check My Work Set up a column for each partner and a total column. a. Determine the distribution of income and losses in the absence of a partnership agreement. b. Use the…

Dividing Partnership Income Carmelo Fernandez and Bobby Morett formed a partnership, investing $300,000 and $100,000, respectively. Determine the income participation of Fernandez and Morett if the year's net income is $75,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $40,000 and $25,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $30,000 and $28,000, respectively, and the remainder divided equally. Fernandez Morett a. $ b. C. d. X $ $ gg X $ e. $ $ $ Feedback X X Check My Work Set up a column for each partner and a total column. a. Determine the distribution of income and losses in the absence of a partnership agreement. b. Use the ratio of the…

Dividing partnership income Carmelo Fernandez and Bobby Morett formed a partnership, investing $180,000 and $60,000, respectively. Determine their participation in the year's net income of $275,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $50,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $38,000 and $50,000, respectively, and the remainder divided equally. Morett Fernandez a. b. d. e.