Chapter 12 Homework Chegg Study l Guided So × y e Mo Meek Lu Ling. And G Chegg S

Question

Chapter 12 Homework Chegg Study l Guided So × y e Mo Meek Lu Ling. And G Chegg Study l Guided Sc × v x × CSecure https://newconnect.mheducation.com/flow/connect.html Mn Meek. I u I ing. and Rarb Reck formed the MI R Pannership by making rnpital rnntrihutans af S74700, $290 500. 516,800, respectively. They predict annual partnership re income of 5192,000 and are considering the fellowing alternatve plans of sharning Income and loss: (a) eqally b In the ratio of their initial capital investmenis; or (c) salary allowances of $83,200 to Mo. $62,400 to Lu. and $94.OOU to barb; interest allowances ot 10% on their initial capital investments, and the balance shared as follows: 20% to MD, 40% ta LL and 40% tc Baro Problem 12-4A Port 1 1. Use the table to show how to distribute net income of $192,000 for the calendar year under each of the altemative lans being considered. (Do not round intermediste calculetions.) Answer is complete but not entirely correct. A ILa8s) Sharing Plan Mu Butb Toltal 492,000 Net Inzome (os Balance allocated aqualy 1.20 164000 164,000 Net Income (loss 492,000 s20 snn30.co$172,200630.0 015-16-1 gms830 con 01275.520 .152,n 44,200 492,000 Total Nat incoma (kss) Bane ofincme loss Intercz: allowance: 94,000 239 500) 252,400 4640D(03,000) 29,050 a ot incoma os alanc alocated 3,000 67,760 67,16940) Share: af the partnarr 2.000 Type here to search 8:58 AM 9/5/2018

Explanation / Answer

Solution:

Income (Loss) Sharing Plan Plan (a) Mo Lu Barb Total Net Income (Loss) $492,000.00 Balance Allocated equally 1/3 $164,000.00 1/3 $164,000.00 1/3 $164,000.00 $492,000.00 Balance of income (Loss) $0.00 Share to the partners $164,000.00 $164,000.00 $164,000.00 $492,000.00 Plan (b) Mo Lu Barb Total Net Income (Loss) $492,000.00 Balance Allocated in proportion to Initial Investment $74700/$830000 $44,280.00 $290500/$830000 $172,200.00 $464800/$830000 $275,520.00 $492,000.00 Balance of income (Loss) $0.00 Share to the partners $44,280.00 $172,200.00 $275,520.00 $492,000.00 Plan (c ) Mo Lu Barb Total Net Income (Loss) $492,000.00 Salary Allowances $83,200.00 $62,400.00 $94,000.00 $239,600.00 Balance of income (Loss) $252,400.00 Interest Allowances $7,470.00 $29,050.00 $46,480.00 $83,000.00 Balance of income (Loss) $169,400.00 Balance allocated in the ratio of 20:40:40 20% $33,880.00 40% $67,760.00 40% $67,760.00 $169,400.00 Balance of income (Loss) $0.00 Share to the partners $124,550.00 $159,210.00 $208,240.00 $492,000.00

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.