View the step-by-step solution to:

Given: Use 'Admit Partner D to Partnership' template section for this data. On January 1, Year 11, Partner A died.

MY PARTNERSHIP PERCENTAGES WITH ADDITION OF A NEW PARTNER AE WRONG. I need to know the correct percentages and why mine are wrong. all financial statements are done and are correct
Given: Tax” attachment below). The Year 11 financial data is also provided on the “Year 11 Financial Data” worksheet (see the “Partnership Income and Tax” attachment below). Use ‘Admit Partner D to Partnership’ template section for this data. On January 1, Year 11, Partner A died. The partnership agreement stipulated that in the event of a partner’s death, the partner’s interest would be paid to the estate within  90 days of the date of death. The balances in the partnership accounts were determined on January 1. The partnership has the authority by the partnership agreement to sell  the deceased partner’s interest at a minimum of 100% of the capital account at the date of death. The remaining partners found an interested party, Partner D, who paid  $350,000 for Partner A’s interest. The partnership agreement specifies that any bonus accruing from the sale of a deceased partner’s interest will be added to the remaining  partners as of the date of death. Partner B will receive 5/8 of the bonus and Partner C will receive 3/8 of the bonus. B C PARTNER e PD 350000. FOR 307120.00 42880 <= BONUS TO EXISTING PARTNERS 26800 16080 Use ‘REALIGNMENT OF PARTNERSHIP ALLOCATIONS’ template section for this data. On October 1, Year 11, the partners agreed to add a new partner. Partner E will own a 20% share of the partnership. Partner E has some expertise that will benefit the  partnership. Partner E is investing $50,000 and land worth a fair market value of $200,000. The partnership will assume the $60,000 mortgage remaining on the land. The ownership allocations will be realigned to allow this new owner a 20% interest. On December 31, Year 11: The partnership agreement states that all capital balances are paid a 10% interest allowance based on the balance on December 31, before any  distributions of net income or salary allowances. Partner E’s interest allowance in this first year will be based on three months of ownership interest in the partnership. The partnership agreement stipulates that Partner B and Partner C each receive a salary allowance of $30,000.  A review of the withdrawals by the partners taken during the year revealed the following amounts for each partner:  Partner B, $60,000; Partner C, $35,000; Partner D, $15,000; and Partner E, $30,000. The remaining net income (loss) is distributed according to the partner’s share of ownership. Income and loss distributions are the same percentage. Task: 302.2.2-01-06 (2006) Help on this Page Click to Show/Hide DirectionsDirections SUBDOMAIN 302.2 - FEDERAL INCOME TAX Competency 302.2.2: Tax Treatments for Partnerships, Estates, and Trusts - The student determines the tax treatment for partnerships, estates, and trusts. Objectives: 302.2.2-01: Calculate ordinary income for a partnership. 302.3.2-02: Reconcile taxable income to book income. 302.2.2-03: Calculate the basis of a partner’s interest. 302.3.2-04: Calculate the impact of applying tax law to assets contributed to a partnership. 302.2.2-05: Calculate the impact of applying tax law to partnership liabilities. 302.3.2-06: Calculate the impact of applying tax law for various ways that ownership in a partnership changes. The Year 10 financial statements for a partnership, Fan Company A, have been provided on the “Year 10 Financial Statements” worksheet ( see the “Partnership Income and  A.  Perform the calculations necessary to complete the following financial statements using the information provided in the given and the Excel templates provided . 1.  Income Statement for Year 11 ( Use the “Year 11 Partnership Distribution” worksheet found in the “Partnership Income and Tax” attachment below.   2.  Partnership Distribution for Year 11 ( Use the “Year 11 Partnership Distribution” worksheet found in the “Partnership Income and Tax” attachment below. )
Background image of page 1
Year 10 Financial Statements - Given Fan Company A Fan Company A Fan Company A Income Statement Statement of Partner's Equity Balance Sheet December 31, Year 10 December 31, Year 10 December 31, Year 10 20% 50% 30% Partner Partner Partner Net Income Revenues: A B C 732,080 Wholesale Sales 1,950,000 Beg Capital 177,000 20,000 154,000 Assets Liabilities Retail Sales 110,000 Salary Allowance 30,000 30,000 672,080 Current Assets: Current Liabilities: Sales Returns and Allow 46,000 Interest Allowance 17,700 2,000 15,400 636,980 Cash 389,997 Accounts Payable 21,000 Sales Discounts 50,000 Net Income/Loss 127,396 318,490 191,094 Accounts Receivable 99,000 Notes Payable 26,893 Net Sales 1,964,000 Withdrawals 14,976 20,000 20,000 Prepaid Insurance 30,000 Ending Capital 307,120 350,490 370,494 Raw Materials Inv. 50,000 Long Term Liabilities: Expenses: Work in Process Inv. 32,000 Notes Payable 19,000 Cost of Goods Sold 824,000 Finished Goods Inv. 60,000 Mortgage Payable 534,000 Administrative Expenses: Prop, Plant, & Equip: Office Supplies 7,000 Land 210,000 Office Machine Rental 8,000 Building 600,000 J. Black, Capital 307,120 Office Staff Payroll 57,000 Manufacturing Equip 140,000 S. Brown, Capital 350,490 L. Green, Capital 370,494 Selling Expenses: Intangible Assets: Advertising 100,000 Patents 18,000 Sales Base Pay 72,000 Sales Commission 58,920 Total Assets 1,628,997 Liabilities and Equity 1,628,997 Travel Expenses: Airfare 22,000 Lodging 32,000 Miscellaneous 6,000 Depreciation Expense 45,000 1,231,920 Net Income (Loss) 732,080 Partners Equity :
Background image of page 2
Show entire document
Sign up to view the entire interaction

Top Answer

Dear student, Solution attached.... View the full answer

8502977.xls

Given: The Year 10 financial statements for a partnership, Fan Company A, have been provided on the “Year 10 Financial Statements” worksheet ( see the “Partnership Income and Tax”...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online