J, K and L have been partners for many years. J and K acquire L's partnership interest
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J, K and L have been partners for many years. J and K acquire L's partnership interest for $300,000, using their personal assets. J contributes $100,000 and K contributes $200,000 for the transaction. The partners' capital balances before L's retirement and their income/loss sharing percentages are as follows:
Partner | Capital Balance | Income Share |
J | $ 80,000 | 15% |
K | 140,000 | 25% |
L | 225,000 | 60% |
Totals | $445,000 | 100% |
Assuming J and K maintain their relative income sharing ratio, after L's departure, J's capital balance will be?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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