EBK ADVANCED FINANCIAL ACCOUNTING
11th Edition
ISBN: 8220102796096
Author: Christensen
Publisher: YUZU
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Question
Chapter 15, Problem 15.1.1E
To determine
Concept Introduction:
Initial Investment in Partnership:
When a partnership is formed, all partners can contribute for their capital. Contribution can be in cash or can be in form of fixed assets. When a partner contributes fixed assets as capital, then its capital contribution is fair value of assets contributed.
:
C’s capital account balance at the time of formation of partnership.
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Required information
[The following information applies to the questions displayed below.]
Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively.
During its first year, the partnership earned $160,000. Prepare calculations showing how the
$160,000 income is allocated under each separate plan for sharing income and loss.
2. The partners agreed to share income and loss in proportion to their initial investments. Net income is
$160,000.
Note: Do not round intermediate calculations.
Fraction to
Allocate Ramer
$60,000/ $150,000
X Answer is complete but not entirely correct.
Ramer's
Share of
Income
$ 160,000 X
Fraction to
Allocate Knox
$90,000/
$150,000
$
Knox's
Share of
Income
160,000
Total
Income
Allocated
$
320,000
Required information
[The following information applies to the questions displayed below.]
Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. During its first year, the partnership
earned $160,000. Prepare calculations showing how the $160,000 income is allocated under each separate plan for
sharing income and loss.
2. The partners agreed to share income and loss in proportion to their initial investments. Net income is $160,000.
Note: Do not round intermediate calculations.
Fraction to Allocate
Ramer
Ramer's Share Fraction to Allocate Knox's Share of Total Income
of Income
Knox
Income
Allocated
$125,000 / $50,000
$125,000/ $75,000
$50,000/ $125,000
$50,000/ $75,000
$
0
Required information Skip to question [The following information applies to the questions displayed
below.] Ramer and Knox began a partnership by investing $58,000 and $87,000, respectively. During its
first year, the partnership earned $180,000. Prepare calculations showing how the $180,000 income is
allocated under each separate plan for sharing income and loss. 2. The partners agreed to share income
and loss in proportion to their initial investments. Net income is $180,000. Note: Do not round
intermediate calculations.
Chapter 15 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
Ch. 15 - Prob. 15.1QCh. 15 - Prob. 15.2QCh. 15 - Prob. 15.3QCh. 15 - Prob. 15.4QCh. 15 - Under what circumstances would a partner’s capital...Ch. 15 - Prob. 15.6QCh. 15 - Prob. 15.7QCh. 15 - Prob. 15.8QCh. 15 - Prob. 15.9QCh. 15 - Prob. 15.10Q
Ch. 15 - Prob. 15.11QCh. 15 - Prob. 15.12QCh. 15 - Prob. 15.13QCh. 15 - Prob. 15.14QCh. 15 - Prob. 15.15AQCh. 15 - Prob. 15.16BQCh. 15 - Prob. 15.1CCh. 15 - Prob. 15.2CCh. 15 - Prob. 15.3CCh. 15 - Prob. 15.1.1ECh. 15 - Prob. 15.1.2ECh. 15 - Prob. 15.1.3ECh. 15 - Prob. 15.1.4ECh. 15 - Multiple-Choice on Initial Investment [AICPA...Ch. 15 - Prob. 15.2ECh. 15 - Prob. 15.3ECh. 15 - Prob. 15.4ECh. 15 - Prob. 15.5ECh. 15 - Prob. 15.6ECh. 15 - Prob. 15.7ECh. 15 - Prob. 15.8.1ECh. 15 - Prob. 15.8.2ECh. 15 - Prob. 15.8.3ECh. 15 - Prob. 15.8.4ECh. 15 - Prob. 15.8.5ECh. 15 - Prob. 15.8.6ECh. 15 - Prob. 15.8.7ECh. 15 - Prob. 15.8.8ECh. 15 - Prob. 15.9ECh. 15 - Retirement of a Partner On January 1, 20X1, Eddy...Ch. 15 - Prob. 15.11PCh. 15 - Prob. 15.12PCh. 15 - Prob. 15.13PCh. 15 - Prob. 15.14PCh. 15 - Withdrawal of a Partner under Various Alternatives...Ch. 15 - Prob. 15.16.1PCh. 15 - Prob. 15.16.2PCh. 15 - Prob. 15.16.3PCh. 15 - Prob. 15.16.4PCh. 15 - Prob. 15.16.5PCh. 15 - Prob. 15.16.6PCh. 15 - Prob. 15.16.7PCh. 15 - Prob. 15.16.8PCh. 15 - Prob. 15.16.9PCh. 15 - Prob. 15.17PCh. 15 - Initial investments and Tax Bases [AICPA Adapted]...Ch. 15 - Prob. 15.19P
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- Please don't give image formatarrow_forwardRequired information [The following information applies to the questions displayed below.] Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. During its first year, the partnership earned $160,000. Prepare calculations showing how the $160,000 income is allocated under each separate plan for sharing income and loss. 3. The partners agreed to share income by giving a $50,000 per year salary allowance to Ramer, a $40,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $160,000. Note: Enter all allowances as positive values. Enter losses as negative values. Net Income Salary allowances Interest allowances Total salary and interest Balance of income. Balance allocated equally Balance of income Shares of the partners Ramer Клох Totalarrow_forward18. Help me selecting the right answer. Thank youarrow_forward
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