Reference no: EM133118313

Question - On January 31, 2022, Lance and Maricar formed a partnership. Lance contributed P200,000 cash and his services to the partnership, while Maricar contributed her equipment and her services to the partnership. The equipment was originally bought at the beginning of the previous year for P140,000 and had an estimated useful life of 10 years with no salvage value. The equipment has been independently evaluated by an appraiser at P130,000. The equipment still has an attached loan of P10,000, which will be assumed by the partnership. It is also agreed that Maricar will serve as a managing partner who is responsible for handling the day-to-day operations of the partnership.

The following profit and loss sharing terms are agreed upon by the partners:

Monthly salary for industrial partners amounting to P3,000 each.

10% interest based on original capital balance of capitalist partners.

20% bonus for the managing partner based on net income after interests, salaries.

Remainder is to be shared in the ratio 60:40 for Maricar and Lance, respectively.

During 2022, the partnership operations resulted to a net income of P310,000, and the partners withdrew 10% of their original capital contributions.

1. How much is the share of Maricar in the net income of the partnership during 2022?

a. 190,266.67

b. 156,066.67

c. 186,000

d. 124,000

2. How much is the capital balance of Lance at the end of the calendar year 2022?

a. 299,733.33

b. 333,933.33

c. 200,000

d. 330,000