An existing partnership (Jim and Jerry) wants to expand their services to include a rare and specialized service.  This service will generate more revenue than other services since it is so specialized and they will be the only one to offer the service in their state.  They find an individual (Bob) who has this specialized skill and asks him to become a partner in their partnership.  Bob agrees but is requesting a $60,000 interest in the partnership for a $30,000 cash investment.  Is this

Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O'Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016, O'Donnell invests a building worth $130,000 and equipment valued at $140,000 as well as $60,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O'Donnell to join this partnership, Reese draws up the following profit and loss agreement: • O'Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year. • O'Donnell will also have added to his capital account 10 percent of partnership income each year (without regard for the preceding interest figure) or $4,000, whichever is larger. All remaining income is credited to Reese. Neither partner is allowed to withdraw funds from the partnership during…

Vishal

Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2019, O’Donnell invests a building worth $74,000 and equipment valued at $44,000 as well as $32,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances.  To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year.O’Donnell will also have added to his capital account 10 percent of partnership income each year (without regard for the preceding interest figure) or $6,000, whichever is larger. All remaining income is credited to Reese.Neither partner is allowed to withdraw funds from the partnership during 2019.…

please answer according to Australian Law Richard is a retired solicitor. His wife Tracy is a retired school teacher. Both wish to remain active and theyinvest in a gift shop that is to be managed by their daughter Alice, who is aged 35. They form a partnershipof three called “Alice's Gift Shop”.Richard and Tracy contributed $40,000 each to fund the purchase of the shop. The partnership agreementprovides:• Both Richard and Tracy are to receive interest at the rate of 10% p.a. on their capitalcontribution of $40,000.• Alice will receive a salary of $25,000 for the management of the shop, as well assuperannuation contributions of $6,000.• A car will be leased by the business and provided to Alice.• All profits and losses are to be shared equally between the three partners.The accounts for this income year show the following:Income ($)Sales (excluding GST) 240,000Expenses ($)Cost of goods sold 130,000Interest on capital paid to Richard and Tracy 8,000Salary to Alice 25,000Superannuation…