Questions 6 and 7 are based on the following: On December 31,2018 A, B and C formed a partnership wherein A contributed P4,800,000 for 20% interest in the partnership, B Contributed P14,400,000 for a capital credit of P12,000,000. After closing of accounting books, B and C withdrew the following amounts respectively: P1,200,000 and P1,440,000. Profit and Loss arrangement are agreed as follows: • Annual salary of P60,000, 48,000 and 36,000 respectively The remainder will be divided in the ratio of 2:3:5 • On December 31,2019 the capital balance of A is 4,836,000, 6. What is the net income / (net loss) of the partnership for the year ended December 31, 2019? A. 24,000 B. (239,856) C. 1,704,000 D. 1,488,000 7. What is the capital balance of C on December 31, 2019? A. 4,836,000 B. 10,728,000 C. 2,424,000 D. 5,736,000

Questions 6 and 7 are based on the following: On December 31,2018 A, B and C formed a partnership wherein A contributed P4,800,000 for 20% interest in the partnership, B Contributed P14,400,000 for a capital credit of P12,000,000. After closing of accounting books, B and C withdrew the following amounts respectively: P1,200,000 and P1,440,000. Profit and Loss arrangement are agreed as follows: • Annual salary of P60,000, 48,000 and 36,000 respectively The remainder will be divided in the ratio of 2:3:5 • On December 31,2019 the capital balance of A is 4,836,000, 6. What is the net income / (net loss) of the partnership for the year ended December 31, 2019? A. 24,000 B. (239,856) C. 1,704,000 D. 1,488,000 7. What is the capital balance of C on December 31, 2019? A. 4,836,000 B. 10,728,000 C. 2,424,000 D. 5,736,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 23P

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