FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Xavier and Yolanda have original investment of $50,000 and $100,000 respectively in a
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- Emmett and Sierra formed a partnership dividing income as follows: 1. Annual salary allowance to Emmett of $42,100 2. Interest of 8% on each partner's capital balance on January 1 3. Any remaining net income divided equally. Emmett and Sierra had $21,600 and $133,600, respectively in their January 1 capital balances. Net income for the year was $232,800. How much net income should be distributed to Emmett?arrow_forwardPT Partnership begins with 2 partners. Parrot contributes assets with a FMV of $50,000 and an adjusted basis of $10,000, and Troy contributes accounting services of $50,000. What income must Ava and Rose pick up on their individual tax returns? Parrot Troyarrow_forwardRobert and Matthew have a partnership agreement which includes the following provisions regarding sharing net income or net loss: 1. A salary allowance of $47,600 to Robert and $36,400 to Matthew. 2. An interest allowance of 10% on capital balances at the beginning of the year. 3. The remainder to be divided 70% to Robert and 30% to Matthew. The capital balance on January 1, 2020, for Robert and Matthew was $99,000 and $135,000, respectively. During 2020, the Robert and Matthew Partnership had sales of $496,000, cost of goods sold of $285,000, and operating expenses of $84,000. Prepare an income statement for the Robert and Matthew Partnership for the year ended December 31, 2020. As a part of the income statement, include a Division of Net Income to each of the partners.arrow_forward
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