On February 1, 2014, George, Hamm, and Ishmael began a partnership in which George and Ishmael each contributed cash of $25,000; and Hamm contributed property with a fair value of $50,000 and a tax basis $40,000.

Hamm receives a 5% bonus of partnership income. George and Ishmael receive salaries of $10,000 each. The partnership agreement of George, Hamm, and Ishmael provides that all partners receive 5% interest on capital, and that profits and losses of the remaining income be distributed to George, Hamm, and Ishmael by a 1:3:1 ratio.

Required:
Prepare a schedule to distribute $25,000 of partnership net income to the partners.

Answer rating: 100% (QA)

Income George Hamm Ishmael Net income 2500... View the full answer