Ch15 - Ch15 Student 1 A partnership is an association of...

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Ch15 Student: ___________________________________________________________________________ 1. A partnership is an association of two or more persons who carry on as co-owners a business for profit. The persons who form the partnership may be: I. individuals. II. corporations. III. fraternal nonprofit organizations. A. I, II B. I, III C. II, III D. I, II, III 2. A partnership is a(n): I. accounting entity. II. taxable entity. A. I only B. II only C. Neither I nor II D. Both I and II 3. Partner C contributed equipment to the CDE partnership. The equipment had a depreciated book value to C of $100,000 and had a fair value of $80,000 at the date the partnership received it. At what amount should the equipment be reported for: A. B. C. D. 4. A partner's tax basis in a partnership is comprised of which of the following items? I. The partner's tax basis of assets contributed to the partnership. II. The amount of the partner's liabilities assumed by the other partners. III. The partner's share of other partners' liabilities assumed by the partnership. A. I plus II minus III B. I plus II plus III C. I minus II plus III D. I minus II minus III
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5. Joan and Irene formed a partnership with each partner contributing the following items: For financial accounting purposes, what should be the capital balances of Joan and Irene immediately after their contributions? A. B. C. D. Jones and Smith formed a partnership with each partner contributing the following items: Assume that for tax purposes Jones and Smith agree to share equally in the liabilities assumed by the Jones and Smith partnership. 6. Refer to the above information. What is each partner's tax basis in the Jones and Smith partnership? A. B. C. D. 7. Refer to the above information. What is the balance in each partner's capital account for financial accounting purposes? A. B. C. D.
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Griffin and Rhodes formed a partnership on January 1, 2009. Griffin contributed cash of $120,000 and Rhodes contributed land with a fair value of $160,000. The partnership assumed the mortgage on the land which amounted to $40,000 on January 1. Rhodes originally paid $90,000 for the land. On July 31, 2009, the partnership sold the land for $190,000. Assuming Griffin and Rhodes share profits and losses equally, how much of the gain from sale of land should be credited to Griffin for financial accounting purposes? A. $ 0 B. $15,000 C. $35,000 D. $45,000 9. Which of the following accounts could be found in the general ledger of a partnership? A. B. C. D. 10. Which of the following accounts could be found in the PQ partnership's general ledger? I. Due from P II. P, Drawing III. Loan Payable to Q A. I, II B. I, III C. II, III D. I, II, and III 11. The DEF partnership reported net income of $130,000 for the year ended December 31, 2008. According to the partnership agreement, partnership profits and losses are to be distributed as follows: How should partnership net income for 2008 be allocated to D, E, and F? A.
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Ch15 - Ch15 Student 1 A partnership is an association of...

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