Lisa, Jeni and Jiso entered into a contract of partnership with a total contribution of P5,000. The parties failed to register its articles of co- partnership with SEC. Which of the following statements is correct?
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A: Hi student Since there are multiple questions, we will answer only first question.
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A:
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- 1. A partnership contract should always be prepared regardless of the amount or nature of the contribution. 2. All types of partnerships are subject to income tax. 3. A partner's contribution in the form of industry will require a debit to the account "Industry" 4. In the partnership books, there are as many capital and drawing accounts as there are partners. 5. A partner's contribution in the form of noncash asset should be recorded at its fair market value even if there is agreed capital. 6. A partnership is much easier and less expensive to organize than a corporation. 7. A newly organized partnership should always open a new set of books for its use. 8. All partnerships have general partners. 9. Each partner generally has the authority to enter into contracts which are binding upon the partnership. 10. The property invested in a partnership by the partner becomes the property of the…A, B and C are general partners in ABC partnership. X is a debtor to the partnership in the amount of P180,000. A received from the debtor X the sum of P60,000 and issued a receipt identifying the amount collected as P60,000. a. A cannot be compelled to share the P60,000 with B and C. b. A can be compelled to share with B and C their P60,000. c. B and C should automatically sue X to collect the P120,000. d. B and C can deduct from the capital of A their share of P60,000.A, B and C formed a commercial partnership. D represented himself as a partner in the partnership to E who, on the belief of such representation, extended credit of P50,000 to the partnership. Assuming only B and C consented to such representation, who shall be liable to E? a. B, C and D are partners by estoppels and thus, are liable to E? b. Only partners A, B and C are liable to E for the benefit extended to them. c. Only D who made the representation is liable to E. d. All of A, B, C and D are liable because of partnership liability for the credit extended to the partnership by E.
- A written Partnership Agreement states: Partner A is to contribute capital of $20,000 and devotes full time work to the partnership. Partner B is to contribute capital of $30,000 and devotes half time work to the partnership. Therefore, in what ratio is net income to be divided? Group of answer choices a) 1:2 b) 3:5 c) 2:3 d) 1:1ces Gorman and Morton form a partnership on May 1, 2022. Gorman contributes cash of $73,000; Morton conveys title to the following properties to the partnership: Equipment Licensing agreements Book Value $ 26,500 46,500 Fair Value $51,000 59,000 The partners agree to start their partnership with equal capital balances. No goodwill is to be recognized. According to the articles of partnership written by the partners, profits and losses are allocated based on the following formula: Gorman receives a compensation allowance of $1,300 per month. All remaining profits and losses are split 40.60 between Gorman and Morton, respectively. Each partner can make annual cash drawings of $5,000 beginning in 2023. Net income of $22,500 is earned by the business during 2022. Steele is invited to join the partnership on January 1, 2023. Because of her business reputation and financial expertise, she is given a 40 percent interest for $77,000 cash. The bonus approach is used to record this investment,…this is partnership fomation 1. the asset contribution of the partnership, and any related liabilities assumed by the partnership, are recorded in the partnership a. historical cost b. carrying amount c. fair value. 2. A and B agreed to form a partnership. A contributes cash, 600,000, inventory 20,000, half if the inventory is unpaid, the partnership agreed to assume the related accounts payable, equipment 50,000. B contributes a land amounting to 400,000 which has a fair value of 700,000. The land is subject to a mortgage 100,000. B agreed to settle the mortgage personally. how much are the adjusted capital contributions of A and B, respectively a. 660,000; 700,000 b. 670,00; 700,000 c. 670,000; 690,00 d. 670,000; 600,000
- A, B and C form a general partnership. A contributes Land, a capital asset A acquired several years ago, worth $160 in which A has a tax basis of $40. The land is subject to a mortgage of $60. Liabilities of the partnership are allocated to the partners on a pro rata basis (i.e., 1/3 to each partner). However, the partnership agreement does not include a DRO or a QIO. Accordingly, A has no obligation to restore a deficit to their capital account in determining whether partnership allocations comply with Sec. 704(b) of the IRC. Immediately after the partnership's formation, what is A' tax capital account?Write the word or group of words that identify each of the following statements. 1.Any partner can act in behalf of the partnership as long as these acts are within the scope of normal partnership activity. 2. A partnership which failed to comply with one or more of the legal requirements for its establishment. 3.An entry prepared when industry is contributed into the partnership. 4. A partnership organized for the purpose of rendering service. 5. A contract whereby two or more persons bind themselves to contribute money, property, or industry to a common fund with the intention of dividing profits among themselves. 6. The basis for recording a partner's contribution in the form of noncash assets 7. One who is both a silent and a scret partner. 8. The partnership contract in writing which governs the formation, operation, and dissolution of the…1) C is admitted in the partnership of A and B by investing P120,000 for an interestequal to P150,000. Assuming that the net assets of the partnership prior to C'sadmission are fairly valued, this transaction would result in A. a decrease of P30,000 in the total partnership assets B. a decrease in the capital balances of A and B C. an increase in the capital balances of A and B D. the recognition of goodwill by the partnership 2) A partnership records the admission of a new partner through purchase of interest bycrediting the purchaser's capital and debiting A. capital account of other partners B. bonus account C. cash account D. capital account of the selling partner
- The AB Partnership has the following plan for the distribution of partnership net income (loss) as shown in the image. Calculate the distribution of partnership net income (loss) for each independent situation below. For each situation, assume the average capital balance of A is $140,000 and of B is $240,000. A: Partnership net income is $360,000 B: Partnership net income is $240,000 C: Partnership net loss is $40,000A and B are general partners in AB Partnership with outstanding liabilities of P 6,000 before the admission of C. C is admitted to the existing partnership of A and B. After several years of operation, the total liabilities of the partnership increased to P 12,000 while the total assets of the partnership are fully exhausted. How much may the unpaid creditor of the partnership validly collect from C? * P 2,000 P 3,000 P 4,000 P 6,000In relation to the formation of a partnership, select the correct statement: Group of answer choices: 1 A partnership is property created once a partnership agreement is signed. 2 A partnership can exist without the members being aware that they are in fact in a partnership relationship. 3 A partnership can be created for a non-profitable purpose. 4 To come into existence, a partnership must be registered under the Partnership Law Act 2019.