Mumtaz, Badia and llya are partners in a business partnership, called MBI. Mumtaz c8 contributes $10,000 and llya contributes $5,000. There is no agreement of how they will share partnership profits and losses. In addition, the partnership borrows A $30,000 from the bank. The business doesn't work out, and MBI is unable to repay the loan. The bank sues Mumtaz personally. The amount Mumtaz can legally recover from lya is: O $10.000 O 330.000 O 15.000 O $15,000
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- Lauren, Matthew, and Susan form a partnership, with Lauren contributing $100,000, Matthew contributing $50,000, and Susan contributing her time and skill. Nothing is said regarding the division of profits. The firm later dissolves. No distributions to partners have been made since the partnership was formed. The partnership sells its assets for a loss of $90,000. After payment of all firm debts, $60,000 is left. Lauren claims that she is entitled to the entire $60,000. Matthew contends that the distribution should be $40,000 to Lauren and $20,000 to Matthew. Susan claims the $60,000 should be divided equally among the partners. Who is correct? Explain.Jo, Ted and Carol were partners. When Jo retired, Ted and Carol agreed to hold Jo harmless for any past debts of the partnership. No creditor agreed to this. Ted and Carol continued the business. All creditors knew of Jo’s retirement. Don was owed $2,000 for supplies delivered to the partnership when Jo was a partner. After Jo retired, Ted gave Don a promissory note of the partnership for the amount of $2,100 as payment for the $2,000 debt owed for supplies. The partnership never paid the note. Ted and Carol refused to pay the note. May Don collect on either the note or the underlying debt from Jo? Why or why not?Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase $10,000 of merchandise for the store. Amy says she did not authorize the order and that she could have purchased the same merchandise for $7,000. Amy refuses to pay for the order. The vendor sues the partners. a. Must the partnership pay for the merchandise? If yes, how much? b. Assuming the partnership is a general partnership, can Amy’s personal assets be taken to pay for the merchandise?
- noni and nino are partners who share profit or loss in the ration of 6:4 they have capital balance of P700,000 and P300,000, respectively. Nino infrom noni of his intention to withdraw part of her capital in the partnership. However, there is not much cash for his withdrawal cause funds are tied up in non cash assets. Instead of withdrawing his share he opted to sell part of his interest to Nina which is a common friend of both partners. Nina agrees to purchase ½ of Nino’s interest for P150,000 Required:A. The entry in the partnership book upon admission of Nina would have debit _________ and credit ______noni and nino are partners who share profit or loss in the ration of 6:4 they have capital balance of P700,000 and P300,000, respectively. Nino infrom noni of his intention to withdraw part of her capital in the partnership. However, there is not much cash for his withdrawal cause funds are tied up in non cash assets. Instead of withdrawing his share he opted to sell part of his interest to Nina which is a common friend of both partners. Nina agrees to purchase 1/3 of Nino’s interest for P150,000Required:A. The entry in the partnership book upon admission of Nina would have debit _________ and credit ______Ben, Dan, and Lilli were partners sharing profits in proportions of one-fourth, one-third, and five-twelfths, respectively. Their business failed, and the firm was dissolved. At the time of dissolution, no financial adjustments between the partners were necessary with reference to their respective partners’ accounts, but the firm’s liabilities to creditors exceeded its assets by $24,000. Without contributing any amount toward the payment of the liabilities, Dan moved to a destination unknown. Ben and Lilli are financially responsible. How much must each contribute?
- The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $20,000 but no other assets. Liabilities amount to $30,000. The capital balances are If both Hammond and Winwood are personally insolvent, how much money must Berry contribute to this partnership? If only Winwood is personally insolvent, how much money must Hammond contribute to the partnership? How will these funds be disbursed? If only Hammond is personally insolvent, how much money should Anderson receive from the liquidation?Tom, Flick, and Harry are partners in an equipment leasing business that has not been able to generate the type of revenue expected by the partners. They share profits and losses in a ratio of 5:3:2. They have decided to liquidate the business and have sold all the assets except for one piece of heavy machinery. All partnership liabilities have been settled, and all the partners are personally insolvent. The machinery has a book value of $65,000, and the partners have capital account balances as follows: Tom, Capital $ 40,000 Flick, Capital 10,000 Harry, Capital 15,000 Each of the following is an independent case. Refer to the information given above. What amount of cash will each partner receive as a liquidating distribution if the machinery is sold for $1,100? Multiple Choice Tom Flick Harry A) $ 1,100 $ 0 $ 0 B) $ 8,050 $ 9,170 $ 2,220 C) $ 1,500 $ 0 $ 400 D) $ 1,500 $ 0 $ 0Sandy and Dave formed a law partnership, agreeing to split the income 50:50. The partnership had net income of $100,000. Dave withdrew $35,000 throughout the year, and Sandy withdrew $30,000. Dave and Sandy had no other income. Because of the partnership activities, Sandy’s AGI increased by
- Neil and Dylan are partners in a lawn mower repair business in Ohio. While Neil is on vacation visiting his sister in Georgia, his sister's neighbor has trouble with her mower and Neil fixes it for her. She insists on paying him . Neil : O a. may keep the money as this partnership is NOT a professional business pursuant to the non - professional exception rule. O b. may not accept the money because it would create a conflict of interest. O c. may keep the payment since he did the work while he was on vacation. O d. may not accept the money because it would mean he was taking a business opportunity away from the partnership. O e. must turn the money over to the partnership because he earned it doing the kind of work that the partnership does.Carrie and Callie form a partnership in which Carrie contributes $85,000 in assets and agrees to devote half time to the partnership. Callie contributed $50,000 in assets and agrees to devote full time to the partnership. If no additional information is available, how will Carrie and Callie share in the division of income? In the ratio of:Prior to liquidating their partnership, Sam and Brian had capital accounts of $60,000 and $240,000, respectively. The partnership assets were sold for $120,000. The partnership had no liabilities. Sam and Brian share income and losses equally Determine the amount of Sam’s deficiency. Determine the amount distributed to Brian, assuming Sam is unable to satisfy the deficiency. Show your work: