The Distance Plus Partneship has the following capital balances at the beginning of the current year: Tiger (50% of profit loses) 135,000 Phil (20%) 105,000 Ernie (30%) 120,000 A. If Sergio invest 150,000 in cash in the business for a 20 percent interest,what Journal ENtry is recorded. Assume that the bonus method is used. B. If Sergio invest $80,000 in the business for a 20percent, what journal entry is recorded? Assume that the bonus method is used. C. If Sergio invest $100,000 in cash in the business for a 20percent,what journal entry is recorded? Assume that the goodwill is used.

The Distance Plus Partneship has the following capital balances at the beginning of the current year: Tiger (50% of profit loses) 135,000 Phil (20%) 105,000 Ernie (30%) 120,000 A. If Sergio invest 150,000 in cash in the business for a 20 percent interest,what Journal ENtry is recorded. Assume that the bonus method is used. B. If Sergio invest $80,000 in the business for a 20percent, what journal entry is recorded? Assume that the bonus method is used. C. If Sergio invest $100,000 in cash in the business for a 20percent,what journal entry is recorded? Assume that the goodwill is used.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter4: Gross Income

Section: Chapter Questions

Problem 2CE

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