Question: ABC Partnership is a general partnership and was started by Partners A, B, and C in Year 1. The written partnership agreement is silent as

ABC Partnership is a general partnership and was started by Partners A, B, and C in Year 1. The written partnership agreement is silent as to how the partners share in profits and losses. Partner A has capital contributions of $40,000, Partner B has capital contributions of $30,000, and Partner C has capital contributions of $30,000. Year 1’s profit is $150,000.

How much of the profit is Partner A entitled to?

Step by Step Solution

★★★★★

3.36 Rating (149 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

If the partnership deed is silent about the profit sharing ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

You have just arrived in a new city and would like to see its sights. Each sight is located in a square and you have assigned each a beauty value. Each road to a square takes an amount of time to...

The ABC partnership is a general partnership and capital is a material income producing factor. ABC has a section 754 election in place. It has no liabilities and possesses the following assets:...

At-Risk Loss Limitation. The KC Partnership is a general partnership that manufactures widgets. The partnership uses a calendar year as its tax year and has two equal partners, Kerry and City...

Suppose that in Year 1 the price level equals 110 and the output level equals $14 trillion and that in Year 2 the price level equals 104 and the output level equals $13 trillion. In the ADAS model,...

Joy Webster and Diana Ruiz have been in business since the beginning of the year. Now at the end of the year, they would like to know how the partnership has done in its first year of operation. Joy...

continuity of the tax table Answer all the questions Question One You are an assistant in the tax department of TX Tax Advisory Services. Your supervisor has asked you to compute the taxable income...

Zola, Becker, and Amber were all CPAs and had worked in the industry for more than 10 years. Each had graduated from College, passed their CPA on the first try and been very successful as Public...

Select the correct answer for each of the following questions. 1. When property other than cash is invested in a partnership, at what amount should the noncash property be credited to the...

Discuss the key elements IN DETAIL of the following contract and your understanding of the clauses in the contract in about. It should clearly address how and why you think the contract is legally...

someone can help with this? i have attached the questions NAME____________________________________________________________________ Business Taxation, Spring 2017, Exam 3 For Parts I&II, enter your...

Bryan and Stacey are in partnership with fixed capitals of $200 000 and $150 000, respectively. The partners do not have a formal agreement about how to share profits and losses, although salaries...

1. You just borrowed $300,000 and the annual interest rate on the loan is 4.5%. Assume you plan to repay the loan with 9 annual payments of equal amounts. What is your annual payment amount? 2. Stock...

First National Bank of Conway is considering installing two ATMs in its Southside branch. The new machines are expected to cost $37,000 apiece. Installation costs will amount to about $15,000 per...

Q: 1 ) Review the following earnings and deductions and determine where ( what box ) ( or if ) they should be reported on the employee s T 4 . Note it s possible that some items will be recorded in...

Finished goods inventory at the end of December is 3,000 units. Ending finished goods are equal to 30 percent of next month's sales. April 2016 sales are expected to total 16,000 units. What should...

Larry wants to invest $700 for three years. compare the growth of his investment at 4% per year, simple interest, to the same investment at 4% per year, compounded annually?

Evaluate the following integrals: 1. ( x 3 - 3x 2 + 2x - 1 ) ( x + 2 ) dx from [ -3, +1 ] 2. [ cos ( 3 x ) + 2 ] ( x - ) dx from [ 0, ] 3. exp ( l x l + 3 ) ( x - 2 ) dx from [ -1, +1 ]

Brand A and brand D. State the alternative hypothesis using statistical notation, the appropriate t-test used to evaluate the hypothesis and show results table in the space above. C59 V B C D OP Data...

ABC Partnership is a general partnership and was started by Partners A, B, and C in 1980 and continues today.As of December 31, 2020, ABC Partnership's balance sheet showed liabilities of $300,000...

The ABC Partnership has one general partner (Anna) and a limited partner (Clay) with the following partnership interests: Anna (General) Clay (Limited) Loss interest 75% 25% Profits interest 60% 40%...

1. A, B & C agree to the formation of a general partnership (ABC) in which each will have the same interest in the partnerships capital and profits/losses. A will contribute Property #1 with a FMV of...

Answer all questions un attached document. TAX 311 Problem Set #2 Partnership, Sub-S and E&G Component 2014, Prof. Vincent R. Barrella vbarrella@pace.edu (212) 618-6479 (732) 330-7910 Fall 2014 RECAP...

Please answer, Henry Sy owns 90% of common shares of SM Prime. On the other hand, SM prime owns 80% of common stocks of SMDC. Henry Sy is an interlocking director of both corporations. If SMDC...