,what amount did she likely indicate he would be able to legally recover from Glen? A) $5000 B) $10 000 C) $15 000
Q: Donald Petersen joined his father, William Petersen, in a chicken hatchery business William had…
A: The partnership will be formed with the agreement of two parties. The terms and conditions of the…
Q: Bean and D. Counter formed a partnership. During the current year, the partnership had the following…
A: Deductions allowed from ordinary income=Salary+Payroll…
Q: Laurel contributed equipment worth $225,000, purchased 6 months ago for $247,000 cash and used in…
A: Limited-liability Corporation (LLC): The form of business entity which is unincorporated, but…
Q: Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis,…
A:
Q: Ming and Denise, mother and daughter, operate a local restaurant as an LLC. The MD LLC earned a…
A: Summarised the information provided in the question, Mona and Denise, mother and daughter, operate a…
Q: When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $80,000, although his…
A: Here one of the partner Danny has withdrawn from the partnership consists of 4 partners After…
Q: Laurel contributed equipment worth $120,000, purchased 9 months ago for $136,500 cash and used in…
A: Limited-liability Corporation (LLC): The form of business entity which is unincorporated, but…
Q: WHAT HAPPENS IF A PARTNER BECOMES INSOLVENT? In 2010, three dentists-Ben Rogers, Judy Wilkinson, and…
A: The first alternative is that Wilkinson and Walker can contribute equivalent to the 1/3 portion of…
Q: Barbara and Streisand are partners sharing profits and losses in the ratio of 55% and 45%. Barbara’s…
A: Part 1 Statement of Liquidation Loan Capital Cash Assets Liabilities Barbara Steiesand…
Q: Leonard and Arlene Warner sold the Warner Manufacturing Company to Elliott and Carol Archer for…
A: a) Bankruptcy is a civil action concerning an individual or corporation incapable of repaying their…
Q: Laurel contributed equipment worth $225,000, purchased 6 months ago for $247,000 cash and used in…
A: In the given situation, Laurel contributed equipment worth $225,000, purchased 6 months ago for…
Q: CJ and Danny have incorporated and obtained a $100,000 loan in their corporate name. The loan is…
A: A lawful entity, ordinarily an organization that respects responsibility is characterized as being…
Q: One of the members in the alliance resigned, namely Nicki. Nicki's ownership in profit and loss is…
A: Goodwill is recorded by an organization when it acquires assets and liabilities by paying price that…
Q: Nory and Oscar started a partnership some years ago and managed to operate profitably for several…
A: Partnership:- When two or more person join together to form a business and divide the profit or loss…
Q: WHAT HAPPENS IF A PARTNER BECOMES INSOLVENT? In 2010, three dentists-Ben Rogers, Judy Wilkinson,…
A: When a person or organization becomes insolvent, they are unable to satisfy their financial…
Q: The leased car was used 80% of the time for business and 20% of the time for private purposes.…
A: Partnership is one of the simplest forms of business registration. In partnership two or more…
Q: So that he will not be delayed in delivering the coffee beans, D gave an additional P50,000.00. What…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : D was…
Q: Bradley goes into bankruptcy owing $25,000 as wages to his four employees. There is enough in his…
A: As per the bankruptcy Act, secured creditors and employees are paid first. Secured creditors are the…
Q: Your client was the beneficiary of an annuity contract purchased by her stepmother. When the…
A:
Q: Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own…
A: a. Compute the allocation of income for each of the three years. Allocation of income for the year…
Q: Harry has just started a business with $500,000 of assets, funded by $300,000 of personal funds and…
A: Setting up the business as a private company, in this case, the return on equity is 100% as all the…
Q: Laurel contributed equipment worth $200,000, purchased 10 months ago for $250,000 cash and used in…
A: Tax: Tax is a financial charge imposed by the county's government on the income of the person, and…
Q: Ron, David, and Mary formed Widget, Inc. Ron and David each received 40% of the stock, and Mary…
A: Formula: David basis in the corporate stock received = Cash contribution + land contribution.
Q: One of the members in the fellowship resigned, Nicki. Nicki's ownership in profit and loss is 25%.…
A: Goodwill in context to accounting is defined as that intangible asset that arises when a business…
Q: When Conde and Dalmacio, partners who share earnings equally, were incapacitated in an airplane…
A: Safe Cash Distribution Method means the distribution of cash according to the current value but not…
Q: Anton agrees to pay P24,500 for 35% of Amy's interest, but the assets must first be revalued, in the…
A: Admission of partner-By Purchase Total capital of the existing partners remain same in case of…
Q: D, E, and F are partners in DEF Enterprises. They want to obtain a loan from X, but X does not know…
A: The loan is outstanding in the books of DEF enterprise and hence the partners of DEF are first…
Q: Lynn and Jack jointly own shares of stock of a corporation, have a joint bank account, and have…
A: Lynn and Jack are partners who jointly own shares and real estate. Lynn and Jack shared the profits…
Q: Smith, Jones, and Brown were creditors of White, who operated a grain elevator known as White’s…
A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…
Q: Sweeney originally contributed $302,000 in cash for a one-fourth interest in the Gilbert LLC. During…
A: When an asset is sold for more than its carrying value, a gain on sale of assets occurs. The…
Q: Glen, Dale, and Al are partners who own Fizz. Glen made a capital contribution of $5000, Dale's was…
A: The Partnership is a process wherein multiple people come together with an intent to achieve a…
Q: Marco Brolo is one of three partners who own and operate Silkroad Partners, a global import–export…
A: Ethics means the behaviour of the individuals deciding what is right and wrong by them. It guides…
Q: 58. This year, Callie and Neil formed CN LLC. Callie contributed $300,000 of cash, and Neil…
A: Yes, debt treated as a nonrecourse debt to the LLC members, because Callie (40%) and Neil’s (60%)…
Q: Mario and Luigi are brothers and they are equal partners in Pipes of Your Dreams Plumbing. Mario…
A: Formula: Gain or loss = Selling value - cost value. Deduction of cost value from selling value…
Q: Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own…
A: Goodwill: Goodwill is an intangible asset that accounts for the excess purchase price at the time of…
Q: Energo Electronics, an incorporated business, has a highly paid electrical and computer specialist,…
A: The level plus account value death benefit means, when the insured person die, his beneficiary…
Q: Ana, Bea, and Cara are partners sharing profits and losses in the ratio of 1:1:2, respectively. They…
A: Partnership is a way of conducting business where one or more individuals come together in order to…
Q: uzy Vopat has owned and operated a proprietorship for several years. On January 1, she decides to…
A: Calculation of capital balance of Suzy Vopat in the partnership Particulars Amount…
Q: Anita and Duncan had been partners for many years in a mercantile business. Their relationship…
A: After many years of mercantile partnership, AN and DN's relationship deteriorated, leading to the…
Q: Lily and Mary owed Jake P500,000.00 for advancing their equity in a corporation they joined as…
A: Solidary obligation defines a legal relationship where one or more of several debtors are each…
Q: Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis,…
A: Liquidation of business mean closing down the business , selling all assets , making payment to all…
Q: Bong, Dong, and Tong are business partners sharing profits and losses 55%, 15%, and 30%,…
A: At the time of liquidation of the partnership, the value to be allocated to each partner would be…
Q: Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own…
A: Partnership business is the one in which two or more persons join hands to share profits and losses…
Q: Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own…
A: As per goodwill method, the amount of goodwill is calculated by the fair market value of all the…
Q: Sweeney originally contributed $175,000 in cash for a one-fourth interest in the Gilbert LLC. During…
A: The gain on sale is equal to sum of long term capital gain and income gain.
Q: le. Alan also has long-term capital gains of 25,000. Assume that Alan and Melissa have no other…
A: To calculate the amount in which deduct for both as,
Q: Mumtaz, Badia and llya are partners in a business partnership, called MBI. Mumtaz c8 contributes…
A: Partnership means where two or more person comes together to do some common business activity and…
Q: formed. The bank required Katherine, Bethany, and Charlie to personally guarantee the bank loan. The…
A: It is given that any loss, profit or debt is allocated at 1/3 rd for each person. The loan borrowed…
Q: In the early part of 2020, the partners of Manuel, Benjamin, and Solomn went to local accountant…
A: A partnership is a formal arrangement between two or more individuals who agrees to be a partner in…
Glen,Dale,and Al are partners who own Fizz.Glen made a capital contribution of $5000,Dale's was $15 000,and Al's was $10 000.Glen is a general partner and he oversees the management of the Fizz business.The
A) $5000
B) $10 000
C) $15 000
D) $20 000
Step by step
Solved in 2 steps with 1 images
- Watson Diggs and Paul Caine form Diamond Group LLC. Watson invests $1,000 into the Diamond Group and Paul invests $500. One of the Diamond Group’s vans was in an accident with Joe Doe who has sued the company for $1,000,000. Is Watson personally liable to Joe Doe for any of the $1,000,000 owed by the Company? Is Paul personally liable to Joe Doe for any of the $1,000,000 owed by the Company? Could Paul or Watson lose any part of their investment into the Company?Donald Petersen joined his father, William Petersen, in a chicken hatchery business William had previously operated as a sole proprietorship. When the partnership was formed, William contributed the assets of the proprietorship, which included cash, equipment, and inventory having a total value of $41,000. Donald contributed nothing. They agreed to share the profits equally. For fifteen years, Donald took over the operation of the hatchery with very little help from his father. When the business was terminated, William contended that he was entitled to the return of his capital investment of $41,000 before Donald could recover anything. Donald asserted that he is entitled to one-half the value of the business. Explain who is correct in his contention.Lynn and Jack jointly own shares of stock of a corporation, have a joint bank account, and have purchased and own as tenants in common a piece of real estate. They share equally the dividends paid on the stock, the interest on the bank account, and the rent from the real estate. Without Lynn’s knowledge, Jack makes a trip to inspect the real estate and on his way runs over Samuel. Samuel sues Lynn and Jack for his personal injuries, joining Lynn as defendant on the theory that Lynn was Jack’s partner. Is Lynn a partner of Jack?
- Mrs. S borrowed P20,000.00 from PG. She and her 19-year-old son, Mario, signed the promissory note for the loan, which note did not say anything about the capacity of the signers. Mrs. S made partial payments little by little. After several years, she died leaving a balance of P10,000.00 on the note. PG demanded payment from Mario who refused to pay. When sued for the amount, Mario raised the defense that when he signed the note he was still a minor. Should the defense be sustained? Why?Leonard and Arlene Warner sold the Warner Manufacturing Company to Elliott and Carol Archer for $610,000. A few months later the Archers sued the Warners in a state court for fraud connected with the sale. The parties settled the lawsuit for $300,000. The Warners paid the Archers $200,000 and executed a promissory note for the remaining $100,000. After the Warners failed to make the first payment on the $100,000 promissory note, the Archers sued for the payment in state court. The Warners then filed for bankruptcy of the Bankruptcy Code. The Archers claimed that the $100,000 debt was nondischargeable because it was for “money obtained by fraud.” Arlene Warner claimed that the $100,000 debt was dischargeable in bankruptcy because it was a new debt for money promised in a settlement contract and thus it was not a debt for money obtained by fraud.a. What are the arguments that the debt is dischargeable in bankruptcy?b. What are the arguments that the debt is not dischargeable in…Grace is an officer of a local bank that merges with a national bank, resulting in a change of ownership. She loses her job as a result of the merger, but she receives a cash settlement of $590,000 from her employer under her golden parachute. Her average annual compensation for the past five tax years was $200,000. If an amount is zero, enter "0". a. What are the tax consequences to Grace and the bank of the $590,000 payment? The $590,000 payment - considered a golden parachute payment. Therefore, the bank is allowed a deduction of $ Grace has taxable income of $ and is liable for an excise tax of $ b. Assume instead that Grace's five-year average annual compensation was $110,000 and that she receives $390,000 in the settlement. What are the tax consequences to Grace and the bank? The $390,000 payment considered a golden parachute payment. Therefore, the bank is allowed a deduction of Grace has taxable income of $ and is liable for an excise tax of $
- CJ and Danny have incorporated and obtained a $100,000 loan in their corporate name. The loan is payable with interest over five years. After paying on the loan regularly for two years, the business falters due to the economy, and CJ and Danny default on the loan. Their business has no assets. Which of the following statements best describes CJ and Danny's liability in this case? Group of answer choices CJ and Danny are each individually liable for one-third of the debt, with the corporation liable for the remaining third. CJ and Danny are each individually liable for one quarter of the debt, with the corporation liable for the remaining half. CJ and Danny are jointly and severally liable for the entire balance. CJ and Danny have no personal liability for the debt unless they pledged personal assets as collateral or signed a personal guarantee.A firm in which A, B and C were partners, placed an order with D for supplying certain goods on credit. Before D could supply the goods C died. D supplied the goods after C’s death, being totally ignorant about the fact. A and B subsequently became insolvent. Can D make C’s estate liable for his debt.Anita and Duncan had been partners for many years in a mercantile business. Their relationship deteriorated to the point at which Anita threatened to bring an action for an accounting and dissolution of the firm. Duncan then offered to buy Anita’s interest in the partnership for $250,000. Anita refused the offer and told Duncan that she would take no less than $360,000. A short time later, James approached Duncan and informed him he had inside information that a proposed street change would greatly benefit the business and that he, James, would buy the entire business for $1 million or buy a one-half interest for $500,000. Duncan made a final offer of $350,000 to Anita for her interest. Anita accepted this offer, and the transaction was completed. Duncan then sold the one-half interest to James for $500,000. Several months later, Anita learned for the first time of the transaction between Duncan and James. What rights, if any, does Anita have against Duncan?
- Vic, who was experiencing financial difficulties, was able to adjust his debts as follows: a. Vic is an attorney. Vic owed his uncle $25,000. The uncle told Vic that if he serves as the executor of the uncle's estate, Vic's debt will be canceled in the uncle's will. The $25,000 debt cancellation is Vic's gross income when the uncle dies. b. Vic borrowed $80,000 from First Bank. The debt was secured by land that Vic purchased for $100,000. Vic was unable to pay, and the bank foreclosed when the liability was $80,000, which was also the fair market value of the property. Vic has a $fill in the blank 01cf0405cfe7044_1 as a result of the foreclosure. c. The Land Company, which had sold land to Vic for $80,000, reduced the mortgage on the land by $12,000. The $12,000 reduction in the debt is Vic's gross income and Vic must his basis in the property.T embezzles $100,000 from his employer in Year 1. The embezzlement isdiscovered during the course of an audit in Year 2, at which time T repays the money infull.a. T realizes $100,000 of income in Year 1.b. T doesn’t realize any income in Year 1 because he had a legal obligation torepay the money at the time he took it.c. T realizes $100,000 of income when the embezzlement is discovered in Year 2,but only if he doesn’t repay it in that year.d. None of the above. While shopping at a flea market in Year 1, T bought a simple jewelry box for $20.When T got home with her new purchase, she discovered that the box had a hiddencompartment which contained an emerald ring. She then immediately had the ringappraised by an expert on emerald jewelry and learned that it was worth $5,000. T soldthe ring to her mother for $4,000 in Year 2.a. There are virtually no cases dealing with the recognition of income for noncashor non-bullion “treasure trove.”b. T would be required to recognize $4,980 of…Your client was the beneficiary of an annuity contract purchased by her stepmother. When the stepmother died, the insurance company paid the client $400,000 and sent her a Form 1099 indicating that the taxable portion (i.e., the amount in excess of the investment in the contract) was $50,000. However, according to the client, her father fraudulently convinced her that he was the intended beneficiary. She gave her father a check equal to the amount she had received from the insurance company. She did not report any of the annuity proceeds in her income tax return. She later discovered the fraud and filed a lawsuit to collect from her father. The IRS has examined your client’s return and has taken the position that she must include the $50,000 in her gross income. Evaluate the IRS’s position.
