Solution to Chapter 15 Sample Quiz

Solution to Chapter 15 Sample Quiz - Solution to Chapter 15...

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Solution to Chapter 15 Sample Quiz PARTNERSHIPS – FORMATION, OPERATIONS, AND CHANGES IN OWNERSHIP INTERESTS Multiple Choice Questions 1. c Willis: [($100,000 x 6) + ($88,000 x 1) + ($128,000 x 5)]/12 = $110,667 Rite: [($120,000 x 5) + ($105,000 x 5) + ($155,000 x 2)]/12 = $119,583 2. b Capital: ($112,000 + $119,000)x(10%) = $23,100 Salary: ($20,000 + $30,000) = $50,000 Total: $23,100 + $50,000 = $73,100 3. b Willis: ($100,000 x 10%) + $20,000 + *$24,000 = $54,000 Rite: ($120,000 x 10%) + $30,000 + *$24,000 = $66,000 $120,000 - ($10,000 + $20,000) + ($12,000 + $30,000) = $48,000 4. b Interest: ($500,000 x 10%) = $50,000 Salary: ($10,000 + $20,000) = $30,000 Bonus: Condition not met = $0 Total allocations = $80,000 and over-allocations = $80,000 - $60,000 = $20,000 5. b Rogers: Interest allocation: $20,000 Salary allocation: $10,000 Smith: Interest allocation: $30,000 Salary allocation: $20,000 There is a total of $80,000 for positive allocations. To bring them down to a $20,000 loss, a
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This note was uploaded on 12/08/2011 for the course ACCT 101 taught by Professor Joe during the Spring '11 term at IUP.

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Solution to Chapter 15 Sample Quiz - Solution to Chapter 15...

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