Gibbs and Reed Partnership owns merchandise that was purchased for $109,00o. The merchandise has a current replacement cost of $90,500, and is priced to sell for $127,000. Gibbs and Reed are admitting a new partner, Jay. At what amount should the merchandise be recorded in the accounts of the new partnership if Jay is to be admitted to the partnership?
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- The Calvin-Dogwood Partnership plans to form a new partnership with Alexis. The existing partnership owns inventory that was purchased for $67,900, has a current replacement cost of $56,700, and is priced to sell for $91,400. At what amount should the inventory be recorded in the accounts of the new partnership if Alexis is to be admitted? a. $56,700 b. $91,400 c. $67,900 O d. $34,700Tim and Michelle have decided to form a partnership with a 60/40 partnership interest ratio. Tim contributes P7500 cash and merchandise inventory with a market value of P1500. a. Tim, Capital will be credited in the amount of b. Michelle's investment should be C. After accounting for the total investments of Tim and Michelle, the total assets of the partnership amounts toCatrina and Donald operate a gift business as partners. The partnership agreement provides that the profits or losses of the partnership should be divided equally after Donald, the active partner, receives a salary of $60,000. For the year ended 30 June 2020, the partnership made a profit of $30,000 after the payment of Donald’s salary. What is the net partnership income? a. $75,000 b. $90,000 c. $15,000 d. $60,000
- Fill in the blnnks: Tim and Michelle have decided to form a partnership with a 60/40 partnership interest ratio. Tim contributes P7500 cash and merchandise invetory with a market value of P1500. a. Tim, Capital will be credited in the amount of b. Michelle's investment should be c. After accounting for the total investments of Tim and Michelle, the total assets of the partnership amounts toThe RU Partnership has two partners, Renee and Uri. Each partner's basis in his or her partnership interest is $16,000 before any distribution. The partnership distributes $26,000 cash to Renee and $6,000 cash to Uri. Read the requirements. Requirement a. Assuming a current distribution, determine for each partner (1) gain or loss recognized and (2) basis in the partnership interest after the distribution. (Complete all input fields. Enter a $0 for any zero balances. Enter a loss with a minus sign or parentheses.) Renee Uri (1) Gain (loss) recognized (2) Basis in the partnership interest after the distribution Requirements a. Assuming a current distribution, determine for each partner (1) gain or loss recognized and (2) basis in the partnership interest after the distribution. b. Assuming a liquidating distribution, determine each partner's gain or loss recognized.Hamisi and Peter are partners, sharing profits and losses in the ratio 3:2. The following is the trial balance in the partnership books at 31st December 2020. Dr Cr Shs Shs Capital Account at 1st January 2020 - Hamisi 16,400 - Peter 13,200 - Hamisi 3,600 - Peter 2,400 Provision for doubtful debts 480 Purchases…
- Admitting New Partners Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $222,000 and $93,000, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis. a. What entry is required by the partnership if the sales price is $60,000? If an amount box does not require an entry, leave it blank. fill in the blank 0b7edefb8011019_2 fill in the blank 0b7edefb8011019_3 fill in the blank 0b7edefb8011019_5 fill in the blank 0b7edefb8011019_6 b. What entry is required by the partnership if the sales price is $90,000? If an amount box does not require an entry, leave it blank. fill in the blank 5aa9c705f072fc1_2 fill in the blank 5aa9c705f072fc1_3 fill in the blank 5aa9c705f072fc1_5 fill in the blank 5aa9c705f072fc1_6! Required information [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 85,000 6,350 (33,500) (16,800) (12,100) (5,000) 5,000 (5,100) Note: Negative amounts should be indicated by a minus sign. c. What do you believe Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1 should be, assuming G&P is an LLC and Gary spends 2,000 hours per year working there full time? Self-employment income (loss)! Required information [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 85,000 6,350 (33,500) (16,800) (12,100) (5,000) 5,000 (5,100) Note: Negative amounts should be indicated by a minus sign. b. Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner. Self-employment income (loss)
- L&J Interests is a partnership with two equal partners, Linda and Joanne. The partnership has income for the year of $44,400 before guaranteed payments. Guaranteed payments of $26,640 are paid to Linda during the year. Calculate the amount of income that should be reported by Linda and Joanne from the partnership for the year. Linda should report income of: $ Joanne should report income of: $The DJ Partnership has two partners, Dawn and Jack. Each partner's basis in his or her partnership interest is $14,000 before any distribution. The partnership distributes $23,000 cash to Dawn and $5,000 cash to Jack. Read the requirements. Requirement a. Assuming a current distribution, determine for each partner (1) gain or loss recognized and (2) basis in the partnership interest after the distribution. (Complete all input fields. Enter a $0 for any zero balances. Enter a loss with a minus sign or parentheses.) Dawn Jack (1) Gain (loss) recognized Requirements (2) Basis in the partnership interest after the distribution a. Assuming a current distribution, determine for each partner (1) gain or loss recognized and (2) basis in the partnership interest after the distribution. b. Assuming a liquidating distribution, determine each partner's gain or loss recognized.Gloria Sanchez and Pierre Mason have a partnership in which they share income equally. They'recapital balances are $ 200,000 and $150,000 respectively. They agree that Mason will sell 1/4 of hispartnership interest to Michelle Rogers. Show the journal entry that must be made if the sales price is (a)$35,000? (b) $40,000?