Wk1 D1 - E12-16 (15-20 min) Fultz a. Half to each partner...

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E12-16 (15-20 min) Net Income (Net Loss) Fultz Hardie Total a. Half to each partner ($45,000) ($45,000) ($90,000) b. Net Income Allocated based on capital balances: $20,000 $40,000 Total $60,000 Total Net Income $100,000 Sharing of first $60,000 of net income based on capital balances: $20,000 $40,000 Total $60,000 Net income remaining for allocation: $40,000 Sharing of next $30,000 based on service: $12,000 $18,000 Total $30,000 Net income remaining for allocation: $10,000 Remainder shared equally: $5,000 $5,000 Total $10,000 Net income remaining for allocation: $0 Net income allocated to the partners $37,000 $63,000 $100,000
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E12-18 (10-15 min) Partners' equity in the new partnership: a. Rose capital $100,000 Novak capital -$50,000 Hollis capital $50,000 Transfer of Novak's equity to Hollis b. Rose capital $100,000 Novak capital $50,000 Total capital $150,000 Hollis' investment in capital $50,000 Total capital after Hollis is admitted $200,000 Hollis' capital in new partnership ($200,000 x 1/4)
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This note was uploaded on 04/20/2011 for the course ACC 206 taught by Professor Any during the Spring '11 term at Ashford University.

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Wk1 D1 - E12-16 (15-20 min) Fultz a. Half to each partner...

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