Income is divided based on the partners failure to sign an

Reference no: EM13481314

Summers and Winters formed a partnership on January 1. Summers contributed $90,000 cash and equipment with a market value of $60,000. Winters' investment consisted of cash, $30,000; inventory, $20,000; and all at market values. Partnership net income for year 1 and year 2 was $75,000 and $120,000, respectively. 1.) Determine each partner's share of the net income for EACH year, assuming each of the following independent situations: a. Income is divided based on the partners' failure to sign an agreement b. Income is divided based on a 2:1 ratioc. Income is divided based on the ratio of the partners' original capital investments d. Income is divided based on the interest allowance of 12% on the original capital investments; salary allowance 2.) Prepare a journal entry to record the allocation of the year 1 income under alternative d. above.

Reference no: EM13481314

Questions Cloud

Lever age pays an 9 rate of interest on 91 million of : lever age pays an 9 rate of interest on 9.1 million of outstanding debt with face value 9.1 million. the firms ebit was

The monumental size and complexity of the tomb of : the monumental size and complexity of the tomb of shihuangdi is astounding. it is believed that the workers were forced

The risk-free rate is 4 the expected rate of return on the : the risk-free rate is 4. the expected rate of return on the stock market is 7. what is the appropriate cost of capital

Prepare the journal entry to record the hale companys : withholdings from the employees salaries include fica ss taxes at a rate of 6.2 fica medicare taxes at a rate of 1.45

Income is divided based on the partners failure to sign an : summers and winters formed a partnership on january 1. summers contributed 90000 cash and equipment with a market value

Explain what is meant by operant conditioning using : word count 2000 wordsthe essay must be word---processedanswer two of the following three questions 1000 words eachq1.

How does the beta of the equity change if the firm changes : assume that a firm will always have enough money to pay off its bonds so the beta of its bonds is 0. the rate of

Joseph wellington cfe is preparing to give an educational : joseph wellington cfe is preparing to give an educational presentation about management fraud at the annual acfe

A project returns -5 if the stock market returns -10 and 5 : a project returns -5 if the stock market returns -10 and 5 if the stock market returns 10. what is the market beta of

User Account

All Pages