billy and sheehan are partners in bass co. their partnership agreement states that billy is entitled...

billy and sheehan are partners in bass co. their partnership agreement states that billy is entitled to an annual salary of 100000 and a bonus of 10% of profit after salary but before bonus. the remainder is shared in the ratio of 7:2. sheehan's share in partnership profit for the year was 296000. how much was the partnership profit before billy's salary and bonus?

a. 1,580,000

b. 1,672,342

c. 1,751,348

d. 1,420,000

Expert Solution

ekkarill92 answered 1 year ago

The Muldoon Partnership costs of three partners, Adam, Dawn and Vanderbeck. The partnership agreement provides for...

The Muldoon Partnership costs of three partners, Adam, Dawn and Vanderbeck. The partnership agreement provides for annual salaries of $30,000 to Dawn and $40,000 to Vanderbeck. Residual profits are shared in a 3:3:4 ratio respectively. Salaries are to be fully implemented, even if partnership net income is less than total salaries. Assuming that partnership net income is $280,000 , Adam’s share of net income is? Please show working.

The partnership agreement of Ahmed and Ali has the following provisions: 1 - Partners are to...

The partnership agreement of Ahmed and Ali has the following provisions: 1 - Partners are to earn 10% interest on their average capital balances 2 - Ali is to earn a 5% bonus on any net income above 40,000 3 - Ahmed and Ali are to earn salaries of 25,000 and 20,000 respectively 4 - Any remaining income or loss is to be divided using a 4:2 ratio Ahmed's average capital balance is 130,000 and Ali's is 30,000 Net income...

Which of the following statements is true of partnerships? If the partners have no partnership agreement specifying...

Which of the following statements is true of partnerships? If the partners have no partnership agreement specifying how to divide profits and losses, then they share profits and losses equally. B. The profit sharing is always based on each partner's capital balances and any losses will be shared equally. C. It is legally required to share the profit and losses equally, irrespective of the partnership agreement. D. The stated ratio of profit sharing needs to be approved by the SEC.

The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment...

The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,000, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue $ 70,000 Gain on sale of land (§1231) $ 8,000 Cost of goods sold $ (38,000 ) Depreciation—MACRS $ (9,000 ) Employee wages $ (14,000 ) Cash charitable contributions $ (3,000 ) Municipal bond...

Partners in the ABCD Partnership decided to dissolve their partnership. On that date, the partners had...

Partners in the ABCD Partnership decided to dissolve their partnership. On that date, the partners had the following pre-liquidation capital balances: Partner A $28,000 Partner B 41,000 Partner C 18,000 Partner D 12,000 A, B, C, and D share residual profits and losses in a 4:3:2:1 ratio. Liabilities at the date of dissolution total $100,000, and noncash assets equal $105,000. During the first month of liquidation, assets having a book value of $55,000 were sold for $31,000. During the second...

On January 1, 2016, Jack and Maya formed a partnership, JM Co. with the agreement that...

On January 1, 2016, Jack and Maya formed a partnership, JM Co. with the agreement that income would be split equally by the partners. Jack's initial investment consisted of cash of $5,000 and a building with a fair market value of $105,000. Maya's initial investment consisted of $110,000 cash. For 2016, the first year of operations, the net loss for the partnership was $18,000. During the first year, neither partner withdrew any money from the partnership. The partnership has a...

You are an accountant at a partnership. The partnership has four partners, and, according to the...

You are an accountant at a partnership. The partnership has four partners, and, according to the partnership agreement, all have an equal stake in the company. This partnership was approached by a corporation that would like to acquire them by a stock acquisition. The partnership has no authorized stock, and the corporation does not want to pay cash for the partnership. The partnership is valued at $4,000,000 today. Reading the partnership agreement, you find that the partnership can be terminated...

1. In the business a general partnership or limited partnership? 2. Do the partners have a...

1. In the business a general partnership or limited partnership? 2. Do the partners have a written partnership agreement? What type of the agreement commonly used?

Bryan and Gayle are equal partners in BG Partnership. The partnership reports the following items of...

Bryan and Gayle are equal partners in BG Partnership. The partnership reports the following items of income and expense: Ordinary income from operations $13,000 Interest income 5,000 Long-term capital gains 23,000 § 179 expense 55,000 Charitable contributions 3,000 page 14-41 Which of these items are considered separately stated items? On what form will these items be reported to the partners? Where will these amounts be reported by the partners?

(IS THERE A PROBLEM THAT IS UNCERTAIN AND NEED TO BE FIX IN THIS PARTNERSHIP AGREEMENT)...

(IS THERE A PROBLEM THAT IS UNCERTAIN AND NEED TO BE FIX IN THIS PARTNERSHIP AGREEMENT) PARTNERSHIP AGREEMENT THIS AGREEMENT made effective as of the 15thday of JANUARY, 2019. BETWEEN: Peter Cutoni (Partner “A”) Of the Hamlet of Bradwardine, in Manitoba - And - Jack Reacher (Partner “B”) Of the City of Brandon, in Manitoba - And - Austin City (Partner “C”) Of the City of Portage la Prairie, in Manitoba WHEREAS the parties are all registered owners, each with...

Question