Allocate the net income to Larry and Rati

Assignment Help Accounting Basics
Reference no: EM132880080

Question - On April 1, 2019, Larry and Rafi created a partnership to produce software. Larry was a lawyer and would handle all the legal matters, but Rati was the technical whiz and would all of the production and sales. Because most of the work would be done by Rati, the partnership agreement specified that Larry is to receive a "salary" of $20,000 and Rati is to receive a "salary" of $50,000. In addition, $50,000 is to be allocated according to their original capital contributions to the partnership. The remainder is to be allocated 4:1 respectively. At the beginning, Larry contributed $200,000 and Rati contribute $50,000 to the partnership and made no draws during 2019. At the end of 2019, the partnership earned $75,000 of net income. Allocate the net income to Larry and Rati.

Reference no: EM132880080

Questions Cloud

Comparative advantage for domestic production : Explain the sources of comparative advantage for the domestic production versus the country identified for international expansion.
Winning lottery and supporting local casino : A researcher wants to know how winning money from "scratch-off" lottery tickets affects people's views about allowing the opening of a casino nearby.
Business or government failed to protect consumers : Share a recent or current event in which a business or government failed to protect consumers. What were the failures?
Significant impact in business presentation : Describe a time when a picture, drawing or other visual made a significant impact in a business presentation you attended.
Allocate the net income to Larry and Rati : At the beginning, Larry contributed $200,000 and Rati contribute $50,000 to the partnership and made no draws during 2019. Allocate the net income to Larry
What is TPs QBI deduction : TP files a joint return with his wife who earns $300,000. Their taxable income is $460,000. The CPA practice pays wages of $100,000. What is TP's QBI deduction
Calculate Settles Inc margin and net income : For the year ended December 31, 2019, Settles Inc. earned an ROI of 8.8%. Calculate Settles Inc margin and net income
Bugs everywhere : What happens if metrics are not tracked on bug identification and bug fixes?
Change management failures : Change management failures can be traced to many different aspects. What should be done differently?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Hamilton company manufactures engines hamilton produces all

hamilton company manufactures engines. hamilton produces all the parts necessary for its engines except for one

  Find a franchisee breakeven sales in dollars

Owner Lei Wong is considering franchising her Global Chopsticks restaurant concept. Find a franchisee's breakeven sales in dollars

  The initial value of the machine

On December 31, 2016, Bart Inc. purchased a machine from Fell Corp. in exchange for a noninterest-bearing note requiring eight payments of $20,000.

  What was the company income before income taxes

What was the company's income before income taxes for the two months ended May 31 under the following methods of accounting

  Nius sales are 40 cash and 60 credit credit sales are

niu companys budgeted sales and direct materials purchases are as follows. budgeted sales budgeted d.m. purchases

  Identify the performance obligations in Renee contract

Identify the performance obligations in Renee's contract with Anna and consider whether there are any differences if: No other entity can manufacture this drug

  Compute Leo cost recovery deductions

Leo does not claim any available additional first-year depreciation. Compute Leo's cost recovery deductions for 2018 and 2019

  What amount should be included in the current liabilities

What amount should be included in the current liabilities section of Lanson's December 31, 2021, balance sheet

  Record these events in the general journal of oz ltd

Record these events in the general journal of OZ Ltd in accordance with the requirement of AASB 2 'Share-based Payment'

  The intent and ability to hold the investments

How would your answers to requirements 1-5 differ if management had the intent and ability to hold the investments until maturity?

  What is maytag cash conversion cycle

Maytag Corporation has 49 days in accounts receivable, 46 days in inventory, and 49 days in accounts payable. What is Maytag's cash conversion cycle?

  Journalize the entry to record the issuance of materials

Problem - Entry for issuing materials - Journalize the entry to record the issuance of materials

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd