FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
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The students in ACCT 450 decide to form apartnership in order to start a business that researchesmergers and acquisitions and sells their analysis toinvestors via a monthly report . Further , they decide*to split the responsibilities of the
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- Do not answer in image format. Maintain accuracy and quality in your answer. Answer completely.arrow_forwardPlease do the Journal Entry. I'm running out of my time. Please do it fastarrow_forwardThree investors wish to start a manufacturing business. The business is expected to generate a large income which it will reinvest for many years. Investor #1 has substantial assets which he plans to contribute to the business. Investor #1 is also concenred about showing too much business income on his personal return. Which business structure(s) would be most appropriate for the business? 1. A limited partnership with Investor #1 as the limited partner. 2. A business trust with all three as equal partners. 3. An S corporation with all three as equal shareholders. 4. AC corporation with all three as shareholdersarrow_forward
- For Industry H, determine each partner's share of income assuming the partners agree to share income by giving a $67,700 per year salary allowance to Price, a $126,100 per year salary allowance to Waterhouse, a $113,700 per year salary allowance to Coopers, a 15% interest on their initial capital investments, and the remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Important! Be sure to click the correct Industry at the top of the dashboard. Net income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of each partner Initial partnership investments Net income Allocation of Partnership Income Price Total net income Total 0 Waterhouse $ $ PRICE, WATERHOUSE, AND COOPERS Statement of Partners' Equity For Year Ended December 31 Price Coopers 0 0 Waterhouse 0 0 0 $ For Industry H, prepare a statement of partners' equity for the…arrow_forwardScenario 1: Alex and Jamie decide to start a consulting firm named "Strategic Advisors." Alex contributes$40,000 in cash, and Jamie contributes $60,000 worth of equipment. They agree to share profits andlosses equally.1) What are the initial journal entries to record the formation of Strategic Advisors?2) How would the capital accounts of Alex and Jamie look after these entriesarrow_forwardRequired information [The following information applies to the questions displayed below.] The TimpRiders LP has operated a motorcycle dealership for a number of years. Amir is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca works full time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Amir and Francesca had bases of $11,900 and $4,100, respectively, and the partnership did not have any liabilities. During the current year, the partnership reported the following results from operations: Net sales Cost of goods sold Operating expenses Short-term capital loss Tax-exempt interest §1231 gain $ 684,000 511,000 186,000 2,800 3,100 7,100 On the last day of the year, the partnership distributed $4,100 each to Amir and Francesca. Required: a. What outside basis do Amir and Francesca have in their partnership interests at the end of the year? b. How…arrow_forward
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