Numbers 6-10 (Bonus Method Vs. Invest or Withdraw Method) On January 1, 2023, Thanos and Helga formed a partnership with each contributing the following assets: Cash Machinery and equipment Building Furniture and fixtures A. B C D. The building is subject to a mortgage loan of P800,000, which is to be assumed by the partnership. The partnership agreement provides that Thanos and Hela share profits and losses in a 30:70 ratio: 6. How much is the capital balance of Thanos and Hela, respectively? Hela Thanos 650,000 2,900,000 650,000 650,000 A B. C. D. Thanos 650,000 650,000 7. Assuming that the mortgage loan is not assumed by the partnership, how much is the capital balance of Thanos and Hela, respectively? 605,000 1,065,000 Thanos A. 1,065,000 B. 650,000 C 605,000 D. 1,065,000 2,900,000 650,000 3,700,000 1,516,667 Thanos A. 1,065,000 B. C. D. Thanos 300,000 250,000 650,000 650,000 1,065,000 100,000 Hela 3,700,000 1,516,667 1,516,667 2,485,000 8. Disregarding the second question and assuming that the partnership agreement states that the capital credit of Thanos and Hela shall be in accordance with the profit and loss ratio, how much is the capital balance of Thanos and Hela, respectively using the bonus method? Hela 2,485,000 C. 2,485,000 D. 1,666,667 Hela 700,000 750,000 2,250,000 9. Assuming that the partnership agreement states that the capital credit of Thanos and Hela shall be in accordance with the profit and loss ratio and that Hela will invest (withdraw) additional cash, how much is the capital balance of Thanos and Hela, respectively? 3,700,000 1,516.667 2,485,000 Hela 2,485,000 3,700,000 1,516,667 2,485,000 10. Continuing the previous question, what is the amount of investment or withdrawal by Hela? A. 1,383,333 B. 605,000 2/4
Numbers 6-10 (Bonus Method Vs. Invest or Withdraw Method) On January 1, 2023, Thanos and Helga formed a partnership with each contributing the following assets: Cash Machinery and equipment Building Furniture and fixtures A. B C D. The building is subject to a mortgage loan of P800,000, which is to be assumed by the partnership. The partnership agreement provides that Thanos and Hela share profits and losses in a 30:70 ratio: 6. How much is the capital balance of Thanos and Hela, respectively? Hela Thanos 650,000 2,900,000 650,000 650,000 A B. C. D. Thanos 650,000 650,000 7. Assuming that the mortgage loan is not assumed by the partnership, how much is the capital balance of Thanos and Hela, respectively? 605,000 1,065,000 Thanos A. 1,065,000 B. 650,000 C 605,000 D. 1,065,000 2,900,000 650,000 3,700,000 1,516,667 Thanos A. 1,065,000 B. C. D. Thanos 300,000 250,000 650,000 650,000 1,065,000 100,000 Hela 3,700,000 1,516,667 1,516,667 2,485,000 8. Disregarding the second question and assuming that the partnership agreement states that the capital credit of Thanos and Hela shall be in accordance with the profit and loss ratio, how much is the capital balance of Thanos and Hela, respectively using the bonus method? Hela 2,485,000 C. 2,485,000 D. 1,666,667 Hela 700,000 750,000 2,250,000 9. Assuming that the partnership agreement states that the capital credit of Thanos and Hela shall be in accordance with the profit and loss ratio and that Hela will invest (withdraw) additional cash, how much is the capital balance of Thanos and Hela, respectively? 3,700,000 1,516.667 2,485,000 Hela 2,485,000 3,700,000 1,516,667 2,485,000 10. Continuing the previous question, what is the amount of investment or withdrawal by Hela? A. 1,383,333 B. 605,000 2/4
SWFT Essntl Tax Individ/Bus Entities 2020
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ISBN:9780357391266
Author:Nellen
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Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BD
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Transcribed Image Text:Numbers 6-10 (Bonus Method Vs. Invest or Withdraw Method)
On January 1, 2023, Thanos and Helga formed a partnership with each contributing the following assets:
Cash
Machinery and equipment
Building
Furniture and fixtures
A.
B.
C.
D.
The building is subject to a mortgage loan of P800,000, which is to be assumed by the partnership. The
partnership agreement provides that Thanos and Hela share profits and losses in a 30:70 ratio:
6. How much is the capital balance of Thanos and Hela, respectively?
Thanos
A.
B.
C.
D.
650,000
2,900,000
650,000
650,000
A.
B.
C.
D.
650,000
650,000
A.
B.
C.
D.
7. Assuming that the mortgage loan is not assumed by the partnership, how much is the capital balance
of Thanos and Hela, respectively?
Thanos
605,000
1,065,000
Thanos
1,065,000
650,000
605,000
1,065,000
Hela
2,900,000
Thanos
300,000
250,000
650,000
3,700,000
1,516,667
8. Disregarding the second question and assuming that the partnership agreement states that the capital
credit of Thanos and Hela shall be in accordance with the profit and loss ratio, how much is the capital
balance of Thanos and Hela, respectively using the bonus method?
Thanos
1,065,000
100,000
650,000
650,000
1,065,000
Hela
3,700,000
1,516,667
1,516,667
2,485,000
Hela
700,000
750,000
2,250,000
Hela
2,485,000
9. Assuming that the partnership agreement states that the capital credit of Thanos and Hela shall be in
accordance with the profit and loss ratio and that Hela will invest (withdraw) additional cash, how
much is the capital balance of Thanos and Hela,respectively?
Hela
2,485,000
3,700,000
1,516,667
2,485,000
3,700,000
1,516,667
2,485,000
10. Continuing the previous question, what is the amount of investment or withdrawal by Hela?
A. 1,383,333
B.
605,000
C.
2,485,000
D. 1,666,667
2/4
●
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