Tic, Toc, and Toe are in a partnership together. They have opening capital balances on January...
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Tic, Toc, and Toe are in a partnership together. They have opening capital balances on January 1, 2021 of $202,000, $182,000, and $116,000, respectively. They have agreed to share profits and losses as follows: i. 5100,000 to be allocated in the ratio of their opening capital balances. ii. 560,000 to be allocated based on service for Tic, Tac, Toe 2:13, respectively. ii. Any remaining profit is allocated equally. Required: a) Profit for 2021 was $250,000. Prepare a schedule to show the income allocation of profit to Tic, Tac, and Toe. (11 marks) Tic, Toc, and Toe are in a partnership together. They have opening capital balances on January 1, 2021 of $202,000, $182,000, and $116,000, respectively. They have agreed to share profits and losses as follows: i. 5100,000 to be allocated in the ratio of their opening capital balances. ii. 560,000 to be allocated based on service for Tic, Tac, Toe 2:13, respectively. ii. Any remaining profit is allocated equally. Required: a) Profit for 2021 was $250,000. Prepare a schedule to show the income allocation of profit to Tic, Tac, and Toe. (11 marks)
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To calculate the income allocation of profit to Tic Tac and Toe we need to follow the agreed profit ... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2021
ISBN: 9781260247138
12th Edition
Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham
Posted Date:
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