3. LJ and Fermin formed a joint venture. They agreed to share profit or loss in the ratio of 70% and 30% respectively. The results of the operations for 2021 taxable year were provided below: JOINT VENTURE LJ FERMIN Gross Income 5 000 000 3 000 000 2 000 000 Business Expenses 3 000 000 2 000 000 1 500 000 The income tax due of LJ in 2021 is:

3. LJ and Fermin formed a joint venture. They agreed to share profit or loss in the ratio of 70% and 30% respectively. The results of the operations for 2021 taxable year were provided below: JOINT VENTURE LJ FERMIN Gross Income 5 000 000 3 000 000 2 000 000 Business Expenses 3 000 000 2 000 000 1 500 000 The income tax due of LJ in 2021 is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bam and Daniel formed a joint venture. They agreed to share profit or loss on the ratio of 70% and 30%, respectively. The results pf operations for 2022 taxable year were provided below: Joint Venture Bam Daniel Gross Income 5,000,000.00 3,000,000.00 2,000,000.00 Business expenses 3,000,000.00 2,000,000.00 1,000,000.00 The income tax due of Bam is? a. 288,000 b. 0 c. 97,000 d. 600,000
AB Partnership’s operation for the year 2022 resulted in a profit of P240,000. Their profit sharing agreement provided the following: a. Salaries of P5,000 and P15,000 is to be given to A and B respectively; b. 10% of profit after salaries and bonus is to be given to Partner B; c. The balance is to be divided using the 7:3 ratio, respectively. How much profit is to be allocated to B?
AB Partnership's operation for the year 2022 resulted in a profit of P240,000. Their profit sharing agreement provided the following: a. Salaries of P5,000 and P15,000 is to be given to A and B respectively; fres A fr free b. 10% of profit after salaries and bonus is to be given to Partner B; c. The balance is to be divided using the 7:3 ratio, respectively. How much profit is to be allocated to B?
According to Profil and Loss Account, the net profit for the year is OMR250,000. The total interest on partner's capital is OMR BOLO00 and interest on partner's drawings is OMR 30.000 The net profit as per Profit and Loss Appropriation Account will be OMR 110.000 (Prolit) OMR 200,000(Loss) OMR 200,000(Protit) OMR 200000 (Profit)
‘AAA, BBB, and CCC are partners sharing profits and losses in the ratio of 5:3:2. During the year their investments and withdrawals are as follows: Investment of AMA, BBB and CCC for P200,000, P175,000 and P375,000 respectively. Withdrawals of AAA, BBB and CCC amounting to P125,000, P62,500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. AAAs personally insolvent. The gain or loss on realization is: a. -125,000b. -625,000c. 125,000d. 625,000
AB Partnership’s operation for the year 2022 resulted in a profit of P180,000. Their profit sharing agreement provided the following:a. Salaries of P15,000 and P25,000 is to be given to A and B respectively;b. 15% of profit after salaries but before bonus is to be given to Partner B;c. The balance is to be divided using the 3:2 ratio, respectively.How much profit is to be allocated to B?
ASSUMING GOCE & OLIVEROS PARTNERSHIP are partners IN TRADE. the 2020 financial records. SERVICE REVENUE 4,490,000; COST OF SERVICE 1,610,000; OPEX 800,000 THE PROFIT AND LOSS IS DISTRIBUTED 55% GOCE AND 45% OLIVEROS. GOCE IS ALSO ENGAGED IN BUSINESS WITH THE FOLLOWING DATA FOR THE YEAR GROSS SALES 2,500,000; COST OF SALES 1,250,000 AND OPEX 550,000. HOW MUCH IS THE INCOME TAX PAYABLE OF GOCE & OLIVEROS PARTNERSHIP? DISTRIBUTABLE SHARE OF OLIVEROS? FINAL TAX OF GOCE? FINAL TAX OF OLIVEROS? Use Philippine tax lax
Net income for Costmore Sales for the year ended December 31, 2021, was P52,000. The partners, Johnson and Lindstrom, have the following capital balances: Capital Balance Johnson Lindstrom Original capital contribution 100,000 100,000 As of Dec 31, 2021 122,000 128,000 Average in 2021 110,000 115,000 a. If there was no agreement as to the distribution of profits or losses, how much of the net income will be allocated to Johnson? (1) 26000 To Lindstrom? (2) 26000 b. If partnership profits are distributed according to ending capital balance, how much of the net income will be allocated to Johnson? (3) 25376 To Lindstrom? (4) 26624 C. If partnership profits are distributed according to an arbitrary ratio of 65:35 to Johnson and Lindstrom respectively, how much of the net income will be allocated to Johnson? (5) 33800 . To Lindstrom? (6) 18200 d. Assume that instead of earning a net income of P52,000, the partnership incurred losses of P30,000. The partnership agreement calls for…
AAA, BBB, and CCC are partners sharing profits and losses in the ratio of 5:3:2. During the year their investments and withdrawals are as follows: Investment of AAA, BBB and CCC for P200,000, P175,000 and P375,000 respectively. Withdrawals of AAA, BBB and CCC amounting to P125,000, P62,500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. AAA is personally insolvent. The gain or loss on realization is: 125,000 -125,000 -625,000 625,000
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On July 1, 2021, X, Y and Z formed a partnership with X as an industrial partner, Y and Z contributed cash of P80,000 and P120,000 respectively. They agree to divide profits in the ratio of 2:53 to X Y and Z respectively. If operations for the year 2021 resulted to a loss of P140,000 How much is the share of Z?⚫
For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?