Solution-How much of the partnerships net income should be

How much of the partnerships net income should be allocated

Reference no: EM132526675

Question - On December 31, 2019, XYZ had revenues of $300,000 and expenses of $200,000. Partners X and Z work full-time, while Partner Y works part-time. According to the partnership agreement, states the following in regards to the division of profits and losses:

Profits and losses will be divided as follows: Partner X will receive a salary allowance of $40,000, Partner Y will receive a salary allowance of $20,000, and Partner Z will receive a salary allowance of $30,000. Any remaining profits/losses will then be divided according to time devoted to the business.

How much of the partnerships net income should be allocated to Partner X, Partner Y, and Partner Z?

Reference no: EM132526675

Questions Cloud

Prepare necessary journal entries to record transactions : Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Titus Co.:

Incident management : Evaluate problem and incident management practices at your organization or an organization with which you are familiar.

Review of Gail Industries security : Write a review of Gail Industries' security and infrastructure policies and practices, and formulate recommendations for improvements.

Show the amount of goodwill from heinrichs investment : On January 2, 2011, Heinreich Co. paid $500,000 for 25% of the voting common stock of Jones Corp. Show the amount of goodwill from Heinrichs investment

How much of the partnerships net income should be allocated : On December 31, 2019, XYZ had revenues of $300,000 and expenses of $200,000. How much of the partnerships net income should be allocated

Develop new information security policy : If you were asked by your employer to develop a new Information Security Policy, where would you turn to find resources to build this policy?

How much gain does jim recognize on the exchange : The patent was worth $15,000 and Jim's basis in the patent was $8,000. How much gain does Jim recognize on the exchange

Windows registry forensics tools : Considering the text and your own research on Windows Registry Forensics tools, What information would the tool yield in an investigation?

What is the cost of the new vehicle for accounting purposes : X Ltd purchased a new motor vehicle for $50 000 less a trade-in allowance of $10 000 on its old vehicle. What is the cost of the new vehicle for accounting

User Account

All Pages

How much of the partnerships net income should be allocated

Reference no: EM132526675

Reference no: EM132526675

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

What is the payback rate for Grameen loans

Calculate the amount of depreciation to report during the

Prepare the general journal entry

What methods should these corporations establish to identify

Adjusting entry when the fiscal period ends

Record adjusting entry to accrue salaries

Stamford office supply company reported the following

Calculate the estimated sales by month and in total

Nami yee is a contractor specializing in custom-built

Calculate the dollar amount of each type of service

What are some factors that circuit city should consider

Discuss several weaknesses in internal control over

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT