Question: Harry and John own 8 0 % and 2 0 % respectively of PCS LP ( a US partnership ) . In exchange for his

Harry and John own 80% and 20% respectively of PCS LP (a US partnership). In exchange for his work on behalf of the partnership, John receives a guaranteed payment of $35,000 for the year ending December 31,2023. Before taking the guaranteed payment into account, the partnership reported $135,000 of income. How much income will John recognize from the partnership in 2023?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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!

Q:

Equation 15.28 reports the pricing formula for the Vasicek zero coupon bond (with $1 principal). Check that it satisfies the fundamental pricing equation (Equation 15.24). That is, take the partial...

Q:

Harry and John own 8 0 % and 2 0 % respectively of PCS LP ( a US partnership ) . In exchange for his work on behalf of the partnership, John receives a guaranteed payment of $ 3 5 , 0 0 0 for the...

Q:

I need your help in this. today. will be your client. For exclusive use Florida International University, 2015 REVISED SEPTEMBER 6, 2013 CRAIG FURFINE KEL757 The Return of the Loan: Commercial...

Q:

I need an expert for this. please check info for details. For exclusive use Florida International University, 2015 REVISED SEPTEMBER 6, 2013 CRAIG FURFINE KEL757 The Return of the Loan: Commercial...

Q:

1. Texas Roadhouse (TXRH) is rapidly expanding into new markets and had sales of $1,263M in 2012. Suppose you expect sales to grow at a 15% rate in 2013, but this rate will slow by 2% per year to a...

Q:

Bidding for Hertz: Leveraged Buyout Overview In late summer 2005, Greg Ledford, managing director and head of automotive and transportation buyouts at the Carlyle Group, found himself examining his...

Q:

I attached information regarding this project, i also attached the financials and also a sample of what i need. the chosen industry isSunCoke Energy Partners LP (NYS: SXCP). This is a 15 to 20 pages...

Q:

Bloomberg CASEO Businessweek STUDIES 4 Weighted Average Cost of Capital Analyze how the theoretical concepts This lesson explores how several companies and industries are of weighted average cost of...

Q:

Requirements : Motivated by the recent allegation of financial misrepresentation, General Electric Co. (GE) is selected as your target company for the analysis. To perform your analysis of the three...

Q:

I would like to do my NFP project onUnited States Fund for United Nations Children's Fund Prepare an executive summary paper on the Form 990 to include the following: a. A brief overview of your...

Q:

Answer the following questions about an organization, based on the Sample Form 990 below. A. Provide: Total revenue Total expenditures End-of-year cash balance Public support percentage Fundraising...

Q:

Badco Inc. purchased a 90% interest in Lazytoo Company for $600,000 cash on January 1, 2011. Any excess of implied over book value was attributed to depreciable assets with a 15-year remaining life...

Q:

Find the interior of each set. {EN} (b) [0,3]U (3,5) (c) {reQ:0

Q:

How was the return and risk calculated for each stock in the following table:

Q:

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...