Hagar is the owner of a sole proprietorship with net assets at book value of 100,000. Lot is also a sole proprietor with net assets at book value of 200,000. the net assets of Hagar and Lot are to be taken by the partnership at their respective book value. Gideon is to contribute cash equal to 1/2 of the total agreed capitalization based on the contribution of Hagar and Lot. The amount of Gideon’s cash contribution should be

Hagar is the owner of a sole proprietorship with net assets at book value of 100,000. Lot is also a sole proprietor with net assets at book value of 200,000. the net assets of Hagar and Lot are to be taken by the partnership at their respective book value. Gideon is to contribute cash equal to 1/2 of the total agreed capitalization based on the contribution of Hagar and Lot. The amount of Gideon’s cash contribution should be

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 25CE

See similar textbooks

Similar questions

Blake and Ryan form the Poole Partnership. Blake contributes cash of $15,000. Ryan contributes land with an adjusted basis of $10,000 and a fair market value of $21,000. The land is subject to a $6,000 mortgage that Poole assumes. Blake and Ryan both receive a 50 percent interest in Poole. What is Ryan's recognized gain or loss on the contribution? a.$11,000 loss b.$5,000 gain c.$16,000 gain d.$4,000 loss e.None of these choices are correct.
Alex and Brix are partners. A salary of P 50,000 is given to Alex and balance shall be divided equally. Assuming that profit is P 20,000, how much will Alex receive as share in the profit?
Asun and Rita agreed to convert the sole proprietorship of Rita into a partnership. Before theagreed formation, the assets and liabilities of Rita’s sole proprietorship’s business are 300,000 and100,000 respectively. They agreed to contribute the partnership's capital equally to share profit andloss equally. If the assets of Rita’s sole proprietorship are valued at 200,000, how much should Ritacontribute as additional cash investment in the total agreed capitalization of 250,000?A. 250,000 B. 100,000C. 50,000D. 25,000
Ciar and Jaybon are partners. Their capital contribution are as follows:Ciar 400,000 and Jaybon will provide his services. The partners agreed to divide the profits or lossess in the ratio of 70% and 30% for Ciar and Jaybon, respectively. If the profit is 100,000, how should the profit be distributed among the partners?Ciar?Jaybon?
Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $27,000 and $18,000, respectively; and the remaining income (loss) equally. How much of the net loss of $(6,000) is allocated to Yolanda?
Matthews, Williams, and Shen share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows: Matthews, $28,000 Cr.; Williams, $62,500 Cr.; Shen, $18,000 Dr. a. What term is applied to the debit balance in Shen’s capital account? b. What is the amount of cash on hand? c. Journalize the transaction that must take place for Matthews and Williams to receive cash in the liquidation process equal to their capital account balances. Liquidating partnerships— capital deficiency
Seth and Rachel have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $27,000 and $18,000, respectively; and the remainder divided equally. How much of the net loss of $16,000 is allocated to Seth?
Walter receives cash of $60,700 and land with a fair market value of $242,800 (adjusted basis of $145,680) in a current distribution. His basis in his partnership interest is $51,595 before the distribution. If an amount is zero, enter "0". a. What amount of gain must Walter recognize as a result of the current distribution?$ What is Walter's basis in the land received?$ b. What amount of gain must the partnership recognize as a result of the distribution?$ c. What is Walter's basis in his partnership interest immediately after the distribution?
tiara, lauryn and camee formed tl&c, a general partnership, as equal partners. Tiara contributed 55000. cash. Lauryn contributed 25000. cashand property with an adjusted pasis of 25000. and a FMV of 35000. Camee contributed property with an adjusted basis if 43000. and a FMV of 55000. The partnership made 90000. in ordinary income for the yhear and there were no cash or property distributions. What is Tiara's ending tax capital account?
In the ABC partnership (to which Daniel seeks admittance), the capital balances of Albert, Bert, and Connell, who share income in the ratio of 5:3:2 are: Albert $500,000 Bert 300,000 Connell 200,000 Based on the preceding information, what amount of goodwill will be recorded if Daniel invests $300,000 for a 20% interest? 250,000 100,000 150,000 200,000
Winnie and Minnie form a partnership. Winnie contributed $5,000 cash and $20,000 in inventory. Minnie contributes $8,000 in cash and land with a current market value of $60,000. The land originally cost $30,000. Minnie also brings over a $20,000 liability to the partnership. Which of the following is correct? Select one: O a. Minnie, capital is credited for 68,000 b. Winnie, capital is debited for 25,000 c. Minnie, capital is credited for 48,000 O d. Winnie, capital is credited for $5,000
James joined a partnership by contributing the following: cash, P20,000;accounts receivable, P4,000; land, P240,000 fair value; and accounts payable, P16,000. What will be the initial amount recorded in James’ capital account? Give the entry to record the investment of James