17 - The loss of Ahmet Asım and his Partner Commandit Company in 2019 is 90.000 TL and the capital of the company is 900.000 TL. The capital share of the limited partner Ahmet Asım is 600.000, the capital share of the limited partner Osman Asım is 300.000 TL. The loss will be distributed in proportion to the capital shares. Which of the following statements is correct? A) 131- 01 Commander owes 30.000 TL. B) 131-02 Commandite owes 90.000 TL. C) 590 Period Net Loss 90.000 TL is credited. D) 331-01 Commandite will be in debt of 30.000 TL. E) 331-02 Commander will be a creditor of 60.000 TL.

17 - The loss of Ahmet Asım and his Partner Commandit Company in 2019 is 90.000 TL and the capital of the company is 900.000 TL. The capital share of the limited partner Ahmet Asım is 600.000, the capital share of the limited partner Osman Asım is 300.000 TL. The loss will be distributed in proportion to the capital shares. Which of the following statements is correct? A) 131- 01 Commander owes 30.000 TL. B) 131-02 Commandite owes 90.000 TL. C) 590 Period Net Loss 90.000 TL is credited. D) 331-01 Commandite will be in debt of 30.000 TL. E) 331-02 Commander will be a creditor of 60.000 TL.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter11: Investor Losses

Section: Chapter Questions

Problem 46P

See similar textbooks

Similar questions

d. 6. Partners Manalo and Capuno receive an interest allowance of P100,000 and P150,000, respectively, and divide the remaining profits and losses in a 3:1 ratio. If the company sustained a loss of P110,000 during the year, what is the effect on Manalo's capital? a. P82,500 decrease b. P120,000 decrease C. P170,000 decrease d. P105,000 decrease
16 - In a collective company with three partners, it has been decided that the capital of each partner will be reduced by 10,000 TL and the company's capital will be reduced to 70,000 TL. Necessary legal procedures have been completed. Accordingly, in the journal entry, which account will be the first on the debtor and how much will it cost?A) 501- Unpaid Capital Hs. 10,000B) 500- Capital Hs. 30,000C) 100- Cash Hs. 70,000D) 331- Payables to Partners Hs. 30,000E) 131 Receivables from Partners Exc. 30,000
8. On May 15, 2025, Mayer Co. invests $8,000 in John, Inc. stock. John, Inc. pays Mayer Co. a $200 dividend on November 15, 2025. Mayer Co. sells the John, Inc. stock on December 10, 2025, for $7,500. Assume the Mayer Co. does not have significant influence over John, Inc. Journalize the 2025 transactions related to Mayer Co.'s investment in John, Inc. stock. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Mayer Co.'s initial investment in John, Inc. stock on May 15, 2025. Date May 15, 2025 Accounts and Explanation Debit Credit
Problem 4. Mr. X is an investor in ABC Corporation. In 2020, he has 1,000 shareholdings acquired at P120 per share classified as a capital asset. Mr. X uses FIFO in costing his investment holdings b. How much is the nondeductible loss in May? c. Supposing that all the remaining shares were liquidated in December 2021 at 130 per share, what would be the capital gain(loss) to be recognized.
Problem 19-29 (Algorithmic) (LO. 3) At her death, Chow owned 55% of the stock in Finch Corporation, with the balance held by family members. In the past five years, Finch has earned average net profits of $1,950,000, and on the date of Chow's death, the book value of its stock is $4,875,000. An appropriate rate of return for Finch's business is in is 6.95%. If required, round your intermediate computations to the nearest dollar. a. If goodwill exists, the total value of Finch stock is $ What value would the IRS argue that the stock Chow owned should be included in her estate? b. Considering the facts given, identify some factors that could be present to reduce the value of such goodwill by selecting "Yes" for ones that can impact a goodwill valuation and "No" for ones that won't. 1. Extraordinary gains. 2. Lower than industry average salaries. 3. Chow was the key person in the success of the business, 4. The appropriate rate of return for this type of business is low.
Problem 19-29 (Algorithmic) (LO. 3) At her death, Chow owned 55% of the stock in Finch Corporation, with the balance held by family members. In the past five years, Finch has earned average net profits of $1,920,000, and on the date of Chow's death, the book value of its stock is $4,800,000. An appropriate rate of return for Finch's business is in is 5.45%. If required, round your intermediate computations to the nearest dollar. a. If goodwill exists, the total value of Finch stock is $ 3,819,358 X. What value would the IRS argue that the stock Chow owned should be included in her estate? $ 381,935 X
7. On September 30, 2021, Remus, Semus and Tuss agreed on a joint venture to sell their common stock shares of the Sagittarius Mines. Gains and losses are to be shared in proportion to the contributed shares. Gains and losses are to be shared in proportion to the contributed shares. Remus contributes 6,000 shares, which had cost him P42 a share. Semus gave 10,000 shares which had a cost of P58 each and Tuss 4,000 shares which had a cost of P62 per share. The par value of the shares was P50 and when the venture began market value was P40 per share. On October 20 he sold 4,500 shares for P44 a share and P3,000 expenses incurred. On November 1, Sagittarius Mines distributed a stock dividend of 20%. Tuss sold 5,000 shares, ex-right dividend, on November 5, for P25 a share. On November 15, Sagittarius mines paid a cash dividend of P1 per share. On November 22 he sold 6,000 shares for P28. On December 220, the remainder of the shares were sold for P35 per share. Tuss' expenses were P4,700.…
30 - 2019 profit of Alper Sinan and Partners Collective is 100,000 TL. The company was established with a capital of 200.000 TL. The capital shares of the partners of the company are as follows:Joint Capital ShareAlper Sinan 50,000Turker Sinan 70.000Ilker Sinan 80.000According to the notarized contract of the company, the profit distribution will be made in proportion to the capital shares of the partners.What should be the amount that Alper Sinan should receive from the profit?A) NoneB) 40,000C) 55,000D) 35,000E) 22,250
14. The net income agreement for Molina and Serraon states net income and net loss shall be divided in a ratio of 4:6, respectively. The net loss for the current year is P50,000. On January 1 of the current year, the capital balances were as follows: Molina, P55,000; and Serraon, P65,000. During the current year Molina withdrew P40,000 and Serraon withdrew P25,000. Compute the capital balances as of December 31 of the current year. Molina, capital debit of P5,000 Serraon, capital credit of P10,000 a. b. credit of P35,000 credit of P70,000 credit of P5,000 С. credit of P10,000 d. none of the above
11. DRAX Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between ₱50 and the market price of the share on the date each right is exercised. The service period is 2020 through 2022, and the rights are exercisable in 2023. The market price of the share was ₱55 and ₱60 on December 2020 and 2021, respectively. What amount should be recorded as compensation expense for 2021? * ₱ 200,000 ₱ 350,000 ₱ 50,000 ₱ 150,000
33. Partners AAA, BBB and CCC share profits and losses in the ratio of 5:3:2. At the end of a very unprofitable year, they decided to liquidate the firm. The partner's capital account balances at this time are as follows: AAA, P616,000 ; BBB, P697,200 ; CCC, P420,000. The liabilities accumulate to P840,000, including a loan of P280,000 from AAA. The cash balance is P168,000. All the partners are personally solvent. The partners plan to sell the assets in installment. If BBB received P100,800 from the first distribution of cash, how much did CCC receive at that time? A. P56,000B. P22,400C. P33,600D. P61,600
N1. Exercise 29.5 Wattle Ltd owns all the share capital of Ashgrove Ltd. The income tax rate is 30%. During the period ended 30 June 2024, the following transactions took place: (a) Ashgrove Ltd sold inventories costing $50 000 to Wattle Ltd. Ashgrove Ltd recorded a $10 000 profit before tax on these transactions. At 30 June 2024, Wattle Ltd has none of these goods still on hand. (b) Wattle Ltd sold inventories costing $15 000 to Ashgrove Ltd for $22