Annie, Peter and Jackson formed a limited liability partnership in 2019. In 2020, the beginning capital...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Annie, Peter and Jackson formed a limited liability partnership in 2019. In 2020, the beginning capital balance of each partner was $22,000, $33,000 and $55,000 respectively. During 2020, the company earned a net income of $72,000, and Annie withdrew $28,000 while Peter and Jackson withdrew $39,000 and $33,000 respectively a) Calculate the amount of net income each partner will receive based on the following independent scenarios. (i) the earnings are divided equally. (ii) Annie receives 35%, Peter receives 43%, and Jackson receives 22% of the earnings. (iii) the earnings are divided based on the partner's capital balance at the beginning of the year. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Do not use the negative sign. Annie Peter Jackson (1) Subtotal b) Calculate the ending capital balance of each partner, assuming that method (ii) is used to divide earnings. (ii) Beginning Capital Balance 22000 Add: Share of net income Less: Withdrawals Ending Capital Balance Annie (iii) Peter 33000 Jackson ✓ 55000 Annie, Peter and Jackson formed a limited liability partnership in 2019. In 2020, the beginning capital balance of each partner was $22,000, $33,000 and $55,000 respectively. During 2020, the company earned a net income of $72,000, and Annie withdrew $28,000 while Peter and Jackson withdrew $39,000 and $33,000 respectively a) Calculate the amount of net income each partner will receive based on the following independent scenarios. (i) the earnings are divided equally. (ii) Annie receives 35%, Peter receives 43%, and Jackson receives 22% of the earnings. (iii) the earnings are divided based on the partner's capital balance at the beginning of the year. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Do not use the negative sign. Annie Peter Jackson (1) Subtotal b) Calculate the ending capital balance of each partner, assuming that method (ii) is used to divide earnings. (ii) Beginning Capital Balance 22000 Add: Share of net income Less: Withdrawals Ending Capital Balance Annie (iii) Peter 33000 Jackson ✓ 55000
Expert Answer:
Answer rating: 100% (QA)
To calculate the amount of net income each partner will receive based on the given scenarios a i If ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
On November 1, 2018, Krazy Kitty Inc. declared $184,000 of dividends payable to stockholders on November 15, 2018. There are 28,700, $5 par value common shares and 10,000, 4%, $5 par value cumulative...
-
The Finance Department at Mark Company produced the following segment margin statement for the most recent period. Division A Division B Total Revenue $1,302,800 $1,954,200 $3,257,000 $480,000...
-
The tune - up specifications of a car call for the spark plugs to be tightened to a torque of 3 4 N ?? m . You plan to tighten the plugs by pulling on the end of a 2 8 - cm - long wrench. Because of...
-
Determine the missing amounts in each of these four separate situations a throughd. Supplies available-prior year-end... $ 300 $1.600 $1360 current year. 2,100 5.400 $6,000 1,840 800 .300 9.600 6,575...
-
Determining Financial Statement Effects of Various Transactions and Identifying Cash Flow Effects According to its annual report, Wendys International serves the best hamburgers in the business and...
-
What do you think a focus on the customer will look like for companies in 2030?
-
Baxter Industries, Inc., is a U.S. company that has a wholly owned subsidiary. The subsidiary maintains its book and records in a foreign currency (FC) and the majority of its local expenses such as...
-
Enterprise Company had the following account totals as of December 31, 20X2: Cost of goods sold $150,000 Accounts receivable 100,000 Rent revenue 10,000 Accounts payable 25,000 Sales 200,000...
-
Omar is leading a weekly workshop series for his peers on how to be a successful student. Each week, he assigns a task for them to try and report back on next session. However, it seems like nobody...
-
Discuss the purpose of double-entry framework, the importance of maintaining the equality of the accounting equation, and suggestions for finding errors in. bookkeeping.?
-
Two friends are walking, having a normal conversation; the sound level of the conversation if 60 db. When they get near a busy street, they have to double the intensity of the sound to be able to...
-
In Ron Howard's Ted Talk, How I discovered the black art of cult branding, he lists Six major cult brand tactics that matter most when building brands and targeting customers. How I discovered the...
-
Suppose one Euro can purchase 1.25 U.S. dollars today in the foreign exchange market, and currency forecasters predict that the U.S. dollar will appreciate by 25% against the Euro over the next 60...
-
A standing transverse wave is formed in a string that is 5.0 m long. Both ends of the string are fixed. Eight loops are present in the standing wave. Answer the following questions about the wave....
-
An investment has a 30% chance of producing a 15% return, a 40% chance of producing a 20% return, and a 30% chance of producing a -10% return. Part (A): What is its expected return? Part (B): What is...
-
An X-ray diffraction (XRD) experiment is carried out on a crystalline solid having FCC structure at room temperature. The solid undergoes a phase transformation on cooling to -20C and shows...
-
Using (1) or (2), find L(f) if f(t) if equals: t cos 4t
-
Mike sells his home to Jane on April 2, 2012. Jane pays the property taxes covering the full calendar year in October, which amount to $2,500. How much may Mike and Jane each deduct for property...
-
Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the...
-
Bev and Ken Hair have been married for 3 years. They live at 3567 River Street, Springfield, MO 63126. Ken is a full-time student at Southwest Missouri State University (SMSU) and Bev works as an...
-
What are the major categories of adjustments to gross income? For a taxpayer in the 22 percent marginal tax bracket, how much would adjustments totaling $10,000 save in taxes?
-
If someone is in the 22 percent marginal tax bracket, is that persons entire income taxed at 22 percent? Why or why not?
-
Define net asset value. When is the net asset value of a mutual fund calculated?
Study smarter with the SolutionInn App