Ellen, Denny, John, and Michelle are equal partners in a partnership that has the following assets: (i) $10,000 of cash, (ii) inventory with a tax basis of $10,000 and a value of $50,000, and (iii) land with a tax basis of $100,000 and a value of $60,000. Each partner has an outside basis of $30,000. Assuming the partnership bas a §754 election in effect, what are the tax consequences if Ellen sells her interest to Pickens for $30,000?

Douglas pays Selena $42,600 for her 27% interest in a partnership with net assets of $126,700. Following this transaction, Douglas's capital account should have a credit balance of a.$126,700 b.$11,502 c.$42,600 d.$34,209

Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net income of $40,000 is allocated to Xavier? 21. a. $20,000 b. $22,000 c. $32,000 d. $0 Moderate OBJ: LO: 12-02 DIF: PTS: 1 ANS: B KEY: Bloom's: Application NAT: BUSPROG: Analytic

_______  If the amount of liabilities is P165,000 and the percentage of owner’s claim in the total partnership assets is 45%, the partnership’s total asset would be a. P200,000               c.  P 366,667 b. P 300,000               d.  P 255,750

5 )

developed in part a(3). etd 189fc64d53a0a6a71 PROBLEM C.11 Dividing Partnership Profit and LossLOC-10 Rothchild Furnishings, Inc., has three partners-Axle, Brandt, and Conrad. At the beginning of the current year their capital balances were: Axle, $180,000; Brandt, $140,000; and Conrad, $80,000. The partnership agreement provides that partners shall receive salary allowances as follows: Axle, $10,000; Brandt, $50,000; and Conrad, $28,000. The partners shall also be allowed 12 percent interest annually on their capital balances. Residual profit or loss is to be divided: Axle, one-half; Brandt, one-third; and Conrad, one-sixth. Instructions Prepare separate schedules showing how income will be divided among the three partners in each of the following cases. The figure given in each case is the annual partnership net income or loss to be allocated among the partners. Round calculations to the nearest dollar. a. Income of $526,000. b. Income of $95,000. c. Loss of $32,000. PROBLEM C.12 Who…

Douglas pays Selena $44,100 for her 27% interest in a partnership with net assets of $127,300. Following this transaction, Douglas's capital account should have a credit balance of a.$44,100 b.$11,907 c.$34,371 d.$127,300

2                  Khalid, Khamis and Majid started a partnership firm on January 1, 2019. They contributed RO. 100,000, RO. 80,000 and RO. 60,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Khalid is to be paid salary of RO. 2,000 p.m. and Khamis is to be paid a commission of RO. 10,000. It also provided that interest on capital be allowed @ 6% p.a. The drawings for the year were: Khalid RO. 12,000, Khamis RO. 8,000 and Majid RO. 2,000. Interest on drawings was RO. 540 for Khalid, RO. 360 for Khamis and RO. 180 for Majid. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 71,320. Required: Prepare the necessary journal entries relating to Profit and Loss Appropriation and Partners’ Capital Account.

2. Hammer and Nail formed a partnership. Hammer contributed equipment with original cost of P370,000 and fair value of P300,000 while Nail contributed cash of P180,000. Hammer and Nail agreed to have a 60:40 interest in the partnership and that their initial capital credits should reflect this fact. A partner's capital account should be increased accordingly by way of additional cash investment. Which of the partners should make an additional investment and by how much? a. Hammer, P20,000 b. Nail, P20,000 c. Hammer, P70,000 d. Nail, P70,000

a. A and B form an equal partnership, AB partnership, with A contributing stock worth a value of $10,000 and a basis of $10,000, as well as land with a value of $10,000 and a basis of $7,000. B contributes accounts receivable (which resulted from their business) with a value of $20,000 (B was on the cash basis). Describe the consequences to A, B, and the AB partnership as a result of these contributions.