User Account

All Pages

What is the total partnership residual income

Assignment Help Financial Accounting
Reference no: EM131265828

Adam, Bella, and Chris operate a partnership with a complex profit and loss sharing agreement. The average capital balance for Adam, Bella and Chris on December 31, 2013 is $120,000, $270,000, and $340,000, respectively. A 6% interest allocation is provided to each partner based on the average capital balance on December 31, 2013. Adam and Bella receive salary allocations of $40,000 and $50,000, respectively. If partnership net income is above $160,000, after the salary allocations are considered (but before the interest allocations are considered), Chris will receive a bonus of 10% of the income (pre-salary and interest, but net of the bonus. Hint: Bonus = b% x (NI – Bonus). All residual income is allocated in the ratios of 2:2:6 to Adam, Bella, and Chris, respectively.

1. Assuming that partnership incurs a net loss of $26,200 in 2013. What is the TOTAL partnership RESIDUAL INCOME allocation in 2013?

2. Assuming that partnership incurs a net loss of $26,200 in 2013. What will the total partnership profit allocation be for Adam in 2013?

3. Assuming that partnership incurs a net loss of $26,200 in 2013. What will the total partnership profit allocation be for Bella in 2013?

4. Assuming that partnership incurs a net loss of $26,200 in 2013. What will the total partnership profit allocation be for Chris in 2013?

Reference no: EM131265828

Questions Cloud

Calculate its speed as a motor when drawing a line current : Assume that armature reaction demagnetizes the field to the extent of 5%.
How much must they charge for each job to break-even : UPS Store prints business cards, brochures, and sells stationary. UPS plans to sell 80 jobs this up coming week at an average cost of $52 apiece. Expenses amount to $1840 each week. How much must they charge for each job to break-even? If they wish t..
List three specific measurable objectives for your company : Describe your chosen company. How long has it been in business, or when will it start business? Who are the key players? Is the company small or large?
Which transaction-related objective for sales : The accounting system will not post a sales transaction to the sales journal without a valid bill of lading number. This control is most relevant to which transaction-related objective for sales? (1) Accuracy (2) Occurrence (3) Completeness (4) Posti..
What is the total partnership residual income : Adam, Bella, and Chris operate a partnership with a complex profit and loss sharing agreement. The average capital balance for Adam, Bella and Chris on December 31, 2013 is $120,000, $270,000, and $340,000, respectively. What is the TOTAL partnership..
Addressing overall expenditures in the us health care : Addressing Overall Expenditures in the U.S. Health Care Industry Many people believe that health care in the United States is unaffordable. Do you agree? If so, what can and should be done to address this?
Explain law of demand and how it relates to recent purchase : Explain the law of demand and how it relates to a recent purchase that you have had to make. Analyze if a shortage was present in a store and you were a manager, how would you solve for this problem.
Planned and emergent approaches : What are differences between analytical/planned and emergent approaches? To what extent does either (or a mix of these) reflect your practical experience?
What substantive law would you apply and why : In an international contract between a State A citizen and a State B citizen, both parties agreed on the arbitral seat in State C. However, there is no choice of law to determine the applicable substantive law. What substantive law would you apply..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute the required sales needed to achieve target

Compute the required sales needed to achieve management's target net income of $68,610 and who are the stakeholders in this decision, is it ethical for Gina to revise the costs as indicated? Briefly explain.

  After her employer transferred her to another town

After her employer transferred her to another town, Rosemary put her house up for sale. After two years of Internet listings, open houses, repairs, and price cuts, a buyer finally came along. By this time, the house had sat empty for 25 months before..

  Evaluate how teamwork and leadership is an effective tool

Evaluate how teamwork and leadership is an effective tool for financial forensic investigations. Provide support for your evaluation.

  Determine the retained earnings on december

Computation of retained earnings using given information and evaluate the retained earnings on December 31, 2005, and 2006.

  Available-for-sale investment

During 2014, Woods Company purchased 60,000 shares of Holmes Corporation common stock for $945,000 as an available-for-sale investment. The fair value of these shares was $900,000 at December 31, 2014. Woods sold all of the Holmes stock for $17 per s..

  In computing the taxable amount of social security benefits

On January 1, 2014, Ron pays $92,550 for corporate bonds that have a $100,000 face value. The bonds were originally issued 10 years earlier for $94,660. Prior to January 1, 2014, the previous owner had included $3,100 of original issue discount (OID)..

  Error in previously issued financial statements

You are the owner of a lawn service company (Grass Man). Your slogan is, “Who is that Grass Man?” Your company provides grounds and maintenance services to a range of corporate customers. Customers are expected to pay on the first of each month, in a..

  Create a powerpoint presentation for senior executive

Unit V PowerPoint Presentation  Create a PowerPoint Presentation for senior executives that will outline how you will measure, evaluate, and justify the implementation of your HRD program (from Unit II). Your presentation should include the following..

  Prepare the operating activities section of the statement

Prepare the operating activities section of the statement of cash flows for 2014. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).

  Which alternative should dubois select

Dubis Inc. has $600,200 to invest. the company is trying to decide between two alternative uses of the funds. which alternative should dubois select

  Minimum transfer price if division is operating capacity

Penn Company has a division that manufactures a component that sells for $80 and has variable costs of $35 and fixed costs of $15. Another division wants to purchase the component. What is the minimum transfer price if the division is operating below..

  Corporation finances with the use of bonds

If a corporation finances with the use of bonds rather than equity, a desirable outcome of selecting this form of financing may well be:

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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