0 out of
What was Cleary's total share of net income for 2011?
The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital
account balances on January 1, 2011, were as follows:
The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will
be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for
a cash investment. The amount of cash that Dorr should invest in the partnership is:
($150,000/.8 = $187,500. $187,500 - $150,000 = $37,500 to invest)
A partnership began its first year of operations with the following capital balances:
Young, Capital: $143,000
Eaton, Capital: $104,000
Thurman, Capital: $143,000
The Articles of Partnership stipulated that profits and losses be assigned in the following manner:
Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman.
Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year.