Nicole and Nicolas, CPAs, a partnership of Certified Public Accountants, had a gross receipt of P220,000 and expenses of 85,000 in 2019: Nicole Nicolas Share in profit and loss ratio 75% 25% Income from other business P125,000 P325,000 Expenses 80,000 190,000 Amount withdrawn partnership 30,000 12,500 The income tax payable by the partnership us a. P75,000 b. P45,900 c. P44,550 d. None
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Subject income tax
Nicole and Nicolas, CPAs, a
P220,000 and expenses of 85,000 in 2019:
Nicole Nicolas
Share in
Income from other business P125,000 P325,000
Expenses 80,000 190,000
Amount withdrawn partnership 30,000 12,500
The income tax payable by the partnership us
a. P75,000 b. P45,900 c. P44,550 d. None
Step by step
Solved in 2 steps
- 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 laxSubject : income tax X Partnership, a general professional partnership had the following data in 2019:Gross Income P1,000,000Deductions 300,000Partners A and B agreed to divide the profits and losses 60% and 40% respectively.8. How much is the income tax due to X Partnership?a. P0b. P150,000c. P210,000d. P220,000The information below relates to “NOT partnership business” for the year ended 31st December, 2019Nyamekye Oliver TwistGH¢’000 GH¢’000 GH¢’000Capital Introduced 20,000 30,000 40,000Drawings 10,000 15,000 20,000i. Nyamekye is entitled to a salaries amounted to GH¢ 9,350,000 per annum, sharing Profit or loss on the basis of capital contributed.ii. Net profit for the period ended 31st December, 2019 was GH¢ 38,500,000. Interest on drawings and Capital are 5% and 10% per annum respectively. All expenses and incomes accrue evenly.iii. Oliver advanced a loan amounted to GH¢ 300,000,000 to “NOT Partnership Business” on 1stSeptember, 2019 but charged an interest of 12.5% per annum on the loan.iv. Twist Retired on 31st December, 2019 but granted his net worth in the partnership business as a loan to the business charging Interest of 9% per annum on the loan.Required a. Prepare Profit or Loss Appropriation for the year ended 31/12/2019. b. Partners’ Capital Account for the year ended 31/12/2019…
- 5. Distribution of Income for Partnerships Julia Green invested $125,000 and Michael Spencer invested $ 80,000 in forming a partnership company and the information to calculate their 2021 net income is as follows: a. Salary Allowances: Julia=3,000 monthly, Michael= 5,000 monthly b. Interest Allowance: 10% on investment c. Any remaining balance will be allocated on the investment ratio. d. 2021 net income- $ 300,000 Required 1. Calculate the 2021 income for each partner 2. Journal entryJun Jon and Company, general co-partnership has the following data of income and expenses for 2018: Gross income- P 2,400,000 Expenses- 1,000,000 Dividend received from a domestic corporation 90,000 Interest on bank deposit (net)- 10,000 Partners Jun share profits and losses in the ratio of 80% and 20%, respectively. The income tax payable by the partnership is a. P420,000 b. P450,000 c. P447, 000 d. P423,000Partnership A, B and C is a law firm. You have been engaged as accountant to prepare financial statements for the year ended Dec. 31, 2019 Partnerships profits are alllocated based fist on salaries,then on interest on opening capital balances then on fixed ratio. Salary allocation amount are A $100000 B $100000 C $160000 Opening capital balances A $70000 B $60000 C $70000 Interest rate is: 5% Fixed ratio is A 3 B 2 C 5 required Prepare year end adjusting entries Allocate partnership profit or loss to each partner Prepare adjusting entry and complete trial balnce Prepare income statement and statement of partners capital for the year ended Dec. 31, 2019 and a balance sheet for Dec.31
- Data for 2020 taxable year of ML partnership (Domestic corporation) including partner's own income (Resident citizens) are as follows: Description ML partnership Martis (40% P/L ratio) Layla (60% P/L ratio) Compensation income - 300,000 270,000 Business income 800,000 450,000 - Allowable deductions 200,000 100,000 - Interest income from deposit in a bank (Philippines) 100,000 10,000 - 5. Assume the partnership is a General partnership, compute for the total tax due (basic tax and final tax) by Layla. 6. Assume the partnership is a General professional partnership, compute for the total tax due (basic tax and final tax) by Martis.Data for 2020 taxable year of ML partnership (Domestic corporation) including partner's own income (Resident citizens) are as follows: Description ML partnership Martis (40% P/L ratio) Layla (60% P/L ratio) Compensation income - 300,000 270,000 Business income 800,000 450,000 - Allowable deductions 200,000 100,000 - Interest income from deposit in a bank (Philippines) 100,000 10,000 - 9. Assume the partnership is a General partnership, compute for the total tax due (basic tax and final tax) by the partnership. 10.Assume the partnership is a General professional partnership, compute for the total tax due (basic tax and final tax) by the partnership.Required information Paul and Wayne equally own PW Partnership. Paul's basis was $30,000 and Wayne's basis was $22,000 at the beginning of the year. PW Partnership had the following income and expense items: Sales $ 330,000 Cost of goods sold 220,000 Guaranteed payment to Paul 40,000 Rent expense 24,000 Depreciation 33,000 Interest expense 4,000 Tax-exempt income 3,000 Health insurance premiums for Paul 3,600 Health insurance premiums for Wayne 3,600 PW Partnership's non-financial information is as follows: Name: PW Partnership Address: 5 Furniture Street, Anywhere, NC 28777 EIN: 56-1234567 Date Partnership Began: 01/01/10 Business Code: 442110 Principal Business Activity: Retail Principal Product or Service: Furniture Follows the Cash Method of Accounting b. Calculate Paul’s basis in his partnership interest.
- Hw.58. Mercedes a calendar year tax payer is a 40% general partner in a calendar year cash basis partnership. For the current year department should receive 160,000 gross revenues from services rendered and paid the following amounts: we expense 28,500 salary to employees 53 800 guaranteed payment to Mercedes 33,300 cash distributions to partner 18,000 payment for accounting services 7200. Mercedes share of income from the partnership for the current year is A. 33300 B. 40980 C. 14880 D. 48180A Sole Proprietor and an Individual with No Business Form a Partnership On Apr. 8, 2020, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2020 Assets Cash P 4,000 Accounts Receivable P160,000 Less: Allowance for Uncollectible Accounts 16,000 144,000 Inventory 200,000 Equipment P 50,000 Less: Accumulated Depreciation 10,000 40,000 Total Assets P388,000 Liabilities and Capital Accounts Payable P 36,000 Tolentino, Capital 352,000 Total Liabilities and Capital P388,000 Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Tolentino is estimated to be 70% realizable. b. The accumulated depreciation of the equipment will be increased by P10,000. c. The accounts payable will be assumed by the partnership. d. The capital of the…11. X Partnership, a general professional partnership, had the following data in 2020; Gross Income P1,000,000 Deductions 300,000 Partners A and B agreed to divide the profits and losses, 60% and 40% respectively. How much is the income subject to tax of X Partnership? а. РО b. P1,000,000 c. P700,000 d. P1,300,000