Juan and Pedro have the following transactions during the year: Juan: Beginning capital – 01/01/2022 – 1,000,000 Debit - - 08/01/2022 – 300,000 Debit - - 09/01/2022 – 800,000 Credit - - 10/30/2022 – 900,000 Credit - - 04/01/2022 – 70,000 Pedro: Beginning capital – 01/01/2022 – 700,000 Debit - - 09/01/2022 – 100,000 Debit - - 05/30/2022 – 90,000 Credit - - 11/30/2022 – 500,000 Credit - - 06/30/2022 – 100,000 What is the ratio of Juan’s share in income if the partnership calls for profit sharing equivalent to the average capital ratio?
Juan and Pedro have the following transactions during the year: Juan: Beginning capital – 01/01/2022 – 1,000,000 Debit - - 08/01/2022 – 300,000 Debit - - 09/01/2022 – 800,000 Credit - - 10/30/2022 – 900,000 Credit - - 04/01/2022 – 70,000 Pedro: Beginning capital – 01/01/2022 – 700,000 Debit - - 09/01/2022 – 100,000 Debit - - 05/30/2022 – 90,000 Credit - - 11/30/2022 – 500,000 Credit - - 06/30/2022 – 100,000 What is the ratio of Juan’s share in income if the partnership calls for profit sharing equivalent to the average capital ratio?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 13P
Related questions
Question
Juan and Pedro have the following transactions during the year:
Juan:
Beginning capital – 01/01/2022 – 1,000,000
Debit - - 08/01/2022 – 300,000
Debit - - 09/01/2022 – 800,000
Credit - - 10/30/2022 – 900,000
Credit - - 04/01/2022 – 70,000
Pedro:
Beginning capital – 01/01/2022 – 700,000
Debit - - 09/01/2022 – 100,000
Debit - - 05/30/2022 – 90,000
Credit - - 11/30/2022 – 500,000
Credit - - 06/30/2022 – 100,000
What is the ratio of Juan’s share in income if the
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you