QUESTION 2 Irfan and Laila agreed to form a partnership. Irfan contributed RM200,000 in cash and Laila contributed assets with a fair market value of RM400,000. The partnership, in its initial year, reported a net income of RM120,000. REQUIRED: Calculate the distribution of the first's year income to the partners under each of the following conditions: (a) Irfan and Laila agreed to share income and losses in a 3:2 ratio. (b) Irfan and Laila agreed to share income and losses in the ratio of their original investments. (c) Irfan and Laila agreed to share income and losses by allowing 10% interest on original investments and sharing any remainder equally.

QUESTION 2 Irfan and Laila agreed to form a partnership. Irfan contributed RM200,000 in cash and Laila contributed assets with a fair market value of RM400,000. The partnership, in its initial year, reported a net income of RM120,000. REQUIRED: Calculate the distribution of the first's year income to the partners under each of the following conditions: (a) Irfan and Laila agreed to share income and losses in a 3:2 ratio. (b) Irfan and Laila agreed to share income and losses in the ratio of their original investments. (c) Irfan and Laila agreed to share income and losses by allowing 10% interest on original investments and sharing any remainder equally.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 28P

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