Nichole is a managing partner of a certain partnership. She receives a bonus as part of her profit and loss allocation. Nichole’s bonus is based on increase in revenues recorded during the period. The bonus arrangement is that Nichole receives one percent on net income for every full percentage point growth in revenues in excess of a five percent revenue growth. During the most recent period, revenues grew from P1,000,000 to P1,080,000 and the net income grew from P196,000 to P240,000. How much bonus will Nichole receive this period? A. 2,200 B. 4,000 C. 7,200 D. 12,000
Q: Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker…
A: A partner's portion of a limited partnership's earnings and losses, as well as the right to receive…
Q: This year, the Tastee Partnership reported income before guaranteed payments of $263,000. Stella…
A: The question is related to the Partnership Accounting. The details are given regarding the same.
Q: JJ and KK are partners who shares profits and losses in the ratio of 60% and 40% respectively. JJ’s…
A: The question is related to Partnership Accounting. The details of two Partners are given. Partners…
Q: Malaluan and Baral are partners. They share profits in the ratio of 3:2 respectively and close…
A: Partnership refers to an agreement where two or more people come together for a common goal. The…
Q: Partners De Guzman and Tugade recueve a salary allowance of 30,000 and 70,000, respectively, and…
A: Partnership is an agreement between two or more than two persons in which they invest their capital,…
Q: Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and close their accounts…
A: According to the Partnership Act 1932, A new partner can be admitted in the existing partnership…
Q: ASHE has a bonus as apart of his partner profit allocation. The bonus is based on the partnerships…
A: Net income exceeds P150,000 = Net income in the current year - P150,000 = P180,000 - P150,000 =…
Q: At the beginning of the year, Leilani contributes property to a partnership in exchange for a 20…
A: Basis in Partnership Interest The calculation of basis in partnership interest which can be used for…
Q: under a partnership agreement sarah is to receive a minimum payment consisting of the greater of…
A: Given information: Partnership net income is 32,000 Sarah share in net income is 25%, Sarah…
Q: On January 1, 2020, July 1,2020, A invests an additional P 10,000 and B withdraws P 11,600. Profits…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Burgundy, Inc., and Violet Gomez are equal partners in the calendar year BV LLC. Burgundy uses a…
A: Given information is: Annual guaranteed payment for Burgundy = $100,000 Taxable income for 2020 =…
Q: Dennis and Company, a business partnership, in their 1st year of operation had the following data of…
A: Partnership Taxation While calculating the partnership taxation first to determine the gross income…
Q: During the current year, Marsha Engles withdrew $4,000 monthly from the partnership of Engles and…
A: Partnership: A partnership is a firm structure whereby multiple people own the firm together. These…
Q: Rodgers and Winter had capital balances of $60,000 and $90,000, respectively, at the beginning of…
A: For the given question, In case of Net Income = $110,000 Allowance of interest on capital balance @…
Q: Bloom and Carnes share profits and losses in a ratio of 2:3, respectively. Bloom and Carnes receive…
A: Net income is calculated by deducting all expenses like salary,tax,interest,etc from total income.
Q: Malaluan and Baral are partners. They share profits in the ratio of 3:2 respectively and close…
A: whenever new partner is admitted in the partnership in the middle of the year, profits are…
Q: Jungkook has a bonus as apart of his partner profit allocation. The bonus is based on the…
A: Formula: Bonus amount = Difference in Net income amount x Bonus percentage.
Q: Jacques is a member of a partnership that had a Net Business Income for tax purposes of $456,000…
A: Partnership refers to the form of business under which two or more individuals are ready to run the…
Q: Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker…
A: Calculation of ordinary business income CALCULATION PARTICULAR AMOUNT A Sales revenue…
Q: During the 2020 income year, the Timms Brothers Partnership recorded a net income of $300,000. The…
A: Partnership refers to an agreement where two or more people come together for a common goal. The…
Q: The partnership agreement of Jones, King, and Lane provides for the annual allocation of the…
A: >Partnership Income (Loss) is allocated based on the partnership agreement.>The Net Income or…
Q: Reardon and Reese had capital balances of $140,000 and $160,000, respectively, at the beginning of…
A: Given that: Capital Balance of Reardon = $140,000 Capital Balance of Reese = $160,000 Salary…
Q: The partners of GWEN and JINX share profits of 60% and 40%respectively. However, GWEN is to receive…
A: This type of question is solved with the help of assuming X. Like Let assume the Bonus amount which…
Q: Mr. Brion is a partner of BINH & Co. a general professional partnership (GPP), Who owns 30% interest…
A: General Professional Partnership is that type of partnership which is formed by individuals in…
Q: The partnership agreement of Jones, King, and Lane provides for the annual allocation of the…
A: Partnership is the business type where the partners run business and distribute the profit.
Q: Partners Fojas and Gomez share profits and loss equally after each has been credited in all…
A: Solution: Since the salary allowances are credited to the partners’ accounts before sharing the…
Q: Beth, Luz and Ana divide profit and loss in the ratio of 2:1:1 respectively, after giving a monthly…
A: The partnership represents the business type that is run by two or more partners who are agreed to…
Q: Leigh Meadows and Byron Leef formed a partnership in which the partnership agreement provided for…
A: Partnership It is that form of organization which is owned and managed by two or more persons who…
Q: Powell is the managing partner of Power Partnership. He is given an incentive of 5% bonus on profit.…
A: Determination of Bonus under assumption 1: Bonus = Profit before deduction for bonus and income tax…
Q: Refozar, Martinez and Magsino formed a partnership. It's on a calendar year basis. The…
A: The residual profit share is shared between partners as per the partnership agreement in the…
Q: Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker…
A: Compute the ordinary business income:
Q: Maria and Javier are the equal partners in MarJa, a partnership that is a qualifying trade or…
A: Qualified Business Income refers to that amount of income which comprises income items that are…
Q: The net income of the Mohammad and Ahmed partnership is 250,000. The partnership agreement specifies…
A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and…
Q: Chloe is a managing partner of a certain partnership. She receives a bonus as part of her profit
A: Option (c) 7,200 is the correct answer.
Q: Taxation pas thru entities.please help with this question
A:
Q: Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker…
A: Description Amount Sales revenue $340,000 Less: Cost of goods sold $120,000 Employee…
Q: Oscar, Felix, and Marv are all one-third partners in the capital and profits of Eastside General…
A: Calculations and Explanations Description Oscar Felix Marv Explanation (1) Tax basis at the…
Q: The partners of Jungkook and Jimin share profits of 60% and 40%respectively. However, Jungkook is to…
A: Bonus shall be calculated as: = Net Income / (100+Bonus rate) * Bonus rate After such apportionment,…
Q: Jungkook and Jimin partners who share profits and losses in the ratio of 3:2 respectively. Salary:…
A: Total partnership income can be calculated by adding the salary paid, interest paid and profits…
Q: Mary and David are partners who share profits and losses on a 3:1 basis. This means Mary receives…
A: As per the given information: Profit and loss sharing ratio - 3:1 Salary allowance for Mary -…
Q: Gabriel, an accountant, earns $360,000 from his practice. He also receives $9,100 in dividends and…
A: a) Computation of AGI:Hence, the AGI, when Gabriel does not participates in the operation of the…
Q: The partnership agreement of Jones, King, and Lane provides for the annual allocation of the…
A: >Partnership Income (Loss) is allocated based on the partnership agreement. >The Net…
Q: Un, Balaba, and Monta are partners with average capital balances during 2020 of P360,000, P180,000,…
A: Capitals : Un = P 360,000 Balaba= P 180,000 Monta= P…
Q: Oscar, Felix, and Marv are all one-third partners in the capital and profits of Eastside General…
A: ANSWER Partnership Interest: Partnership interest mea an equity interest of a person in a…
Q: Bloom and Carnes share profits and losses in a ratio of 2:3, respectively. Bloom and Carnes receive…
A: Net income which usually known as net earnings. Net income means deducting all the expenses (Costs)…
Q: Calculate the amount of income from the partnership that William should report for his tax year…
A: Given information is: Lilac Designs is a partnership with a tax year that ends November 30, 2018.…
Q: Gomez has a capital balance of $240,000 after adjusting assets to fair market value. Banks…
A: In a partnership form of organization, it is generally owned and managed by 2 or more people who…
Q: Jerry, a partner in the JSK partnership, begins the year on January 1, 2018 with a capital balance…
A: Monthly weighted average capital balance of Jerry in 2018 = $20,000*2/12 + ($20,000 + $120,000)*…
Q: The partnership agreement of Jones, King, and Lane provides for the annual allocation of the…
A: Partnership It is that form of organization which is owned and managed by two or more persons who…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Chloe is a managing partner of a certain partnership. She receives a bonus as part of her profit and loss allocation. Chloe’s bonus is based on increase in revenues recorded during the period. The bonus arrangement is that Chloe receives 1% on net income for every full percentage point growth inrevenues in excess of a five percent revenue growth. During the most recent period, revenues grew from $1,000,000 to $1,080,000 and the net income grew from $196,000 to $240,000. What amount of bonus will Chloe receive this period? A. 2,200 B. 4,000 C. 7,200 D. 12,000Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart receive an annual guaranteed payment of $10,000 each to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses (20,000) (4,500) Overall net income $ 97,000 Note: Leave no answer blank. Enter zero if applicable. Description Problem 09-64 Part b (Static) b. How will Firewalker allocate ordinary business income and separately stated items to its partners? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Interest income Long-term capital gain Guaranteed payments Self-employment income $ 340,000…Beth, Luz and Ana divide profit and loss in the ratio of 2:1:1 respectively, after giving a monthly salary of P10,000 to each partner and bonus of 20% to Beth. Determine the share of each partner and record the distribution on the following independent situations: If Luz received a profit share of P50,000 after six months, how much did Beth receive? Assume bonus is based on net income before bonus. b) id Luz received a profit share of P50,000 after one year, how much did Beth receive? Bonus is based on the net income after bonus.
- Rosy, Roland and Robert were partners with capital balances as at year end of P250,000; P350,000; P400,000, respectively. The partner's agreement stated that profit sharing will be based on year-end capital balances. If the net income for the year before 30% income tax amounted P280,000, how much will be the profit share of Roland ?Pan and Sit share profits in the ration of 3:2. However, Pan is to receive a bonus of 20% of the profits, in addition to her profit share. The partnership made a profit for the year of P24,000 before the bonus. Assuming Pan's bonus is computed in profit after deducting said bonus, how much profit share will Sit receive?Victoria, Wilda and Xenia are partners in a consultancy firm which commenced its operation on July 1, 2018. Victoria is the managing partner. As per agreement for sharing profits, the managing partner will receive a salary of P12,000 per month and the remaining profit will be shared by the partners equally. On December 31, 2018, the firm determined that its income was P 300,000. How much will Wilda receive as her share in the profit? A. P 76,000 B. P 96,000 C. P 52,000 D. P 84,000
- Arnel is a managing partner in a trading business. Part of his profit allocation is a bonus based on the store's net income. The bonus is 8% of net income in excess of P200,000 after deducting the bonus. If net income for the current year was P250,000, Arnel's bonus would be closest toJhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart each receive an annual guaranteed payment of $10,000 to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: Sales revenue $340,000 Interest income 3,300 Long-term capital gains 1,200 Cost of goods sold (120,000) Employee wages (75,000) Depreciation expense (28,000) Guaranteed payments (20,000) Miscellaneous expenses (4,500) Overall net income $97,000 (Leave no answer blank. Enter zero if applicable.) c. How much self-employment tax will each partner pay assuming none has any other source of income or loss? (Round your intermediate calculations and final answers to the nearest whole dollar amount.)…Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart each receive an annual guaranteed payment of $10,000 to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: Sales revenue $340,000 Interest income 3,300 Long-term capital gains 1,200 Cost of goods sold (120,000) Employee wages (75,000) Depreciation expense (28,000) Guaranteed payments (20,000) Miscellaneous expenses (4,500) Overall net income $97,000 (Leave no answer blank. Enter zero if applicable.) b. How will it allocate these amounts to its partners? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Description Jhumpa Stewart Kelly…
- Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart each receive an annual guaranteed payment of $10,000 to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: Sales revenue $340,000 Interest income 3,300 Long-term capital gains 1,200 Cost of goods sold (120,000) Employee wages (75,000) Depreciation expense (28,000) Guaranteed payments (20,000) Miscellaneous expenses (4,500) Overall net income $97,000 (Leave no answer blank. Enter zero if applicable.) b. How will it allocate these amounts to its partners? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Description Jhumpa Stewart Kelly Ordinary…Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart each receive an annual guaranteed payment of $10,000 to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: Sales revenue $340,000 Interest income 3,300 Long-term capital gains 1,200 Cost of goods sold (120,000) Employee wages (75,000) Depreciation expense (28,000) Guaranteed payments (20,000) Miscellaneous expenses (4,500) Overall net income $97,000 (Leave no answer blank. Enter zero if applicable.) 1. How much ordinary business income (loss) would Firewalker report for the current year? Ordinary business income (loss)The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business’s profit or loss in the following sequence:∙ Jones, the managing partner, receives a bonus equal to 20 percent of the business’s profit.∙ Each partner receives 15 percent interest on average capital investment.∙ Any residual profit or loss is divided equally.The average capital investments for 2018 were as follows: Jones . . . . . . . . . . . . . . .. . . . $100,000King . . . . . . . . . . . . . . . . . . . . 200,000Lane . . . . . . . . . . . . . . . . . . . . 300,000 How much of the $90,000 partnership profit for 2018 should be assigned to each partner?