1- Singer and McMann are partners in a business. Singer\'s original capital was
ID: 2530297 • Letter: 1
Question
1- Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses on a 3:2 ratio, what will McMann's share of the income be if the income for the year is $15,000?
a. $9,400
b. $14,000
c. $6,000
d. $12,600
2- The Calvin-Dogwood Partnership owns inventory that was purchased for $90,000, has a current replacement cost of $85,900, and is priced to sell for $125,000. At what amount should the inventory be recorded in the accounts of the new partnership if Alexis is to be admitted?
a. $129,100
b. $90,000
c. $85,900
d. $125,000
3- Immediately prior to the admission of Abbott, the Smith-Jones Partnership assets had been adjusted to current market prices and the capital balances of Smith and Jones were $55,700 and $60,400, respectively. If the parties agree that the business is worth $154,800, what is the amount of bonus that should be recognized in the accounts at the admission of Abbott?
a. $38,700
b. $99,100
c. $94,400
d. $19,350
Explanation / Answer
Solution for First Question
mcmanns share is $6000
15000*2/5
Hence Option C is correct.
As per chegg only first Question can be solved.
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