1. What is the total capital balance of the partnership after the admission by Marshall? 2. What is the capital share of Marshall after he was admitted in the pait ship? 3. What is the percentage share of Marshall in the profits and losses 4. What is the combined gain realized by Manuel and Marcus upon the sale of a portion of their interest in the partnership to Marshall? 5. What is the gain realized by Manuel upon the sale of a portion of his interest in the partnership to Marshall

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BD
icon
Related questions
Question
1. What is the total capital balance of the partnership after the admission by Marshall? 2. What is the capital share of Marshall after he was admitted in the pait ship? 3. What is the percentage share of Marshall in the profits and losses 4. What is the combined gain realized by Manuel and Marcus upon the sale of a portion of their interest in the partnership to Marshall? 5. What is the gain realized by Manuel upon the sale of a portion of his interest in the partnership to Marshall
Manuel and Marcus are partners with the following capital balances as at June 30,
Multiple Choice - III
20xx with their respective profit and loss ratio:
Capital
P3,000,000
P4,500,000 ·
Profit and Loss Ratio
Mamuel
40 %
Marcus
60.%
On July 1, 20xx Marshall is admitted to the partnership when he purchased
proportionate interest from Manuel and Marcus in the net assets and profits of the
partnership for P2,700,000. As a result Marshall acquired 1/3 interest in the net
assets and profits of the firm.
Transcribed Image Text:Manuel and Marcus are partners with the following capital balances as at June 30, Multiple Choice - III 20xx with their respective profit and loss ratio: Capital P3,000,000 P4,500,000 · Profit and Loss Ratio Mamuel 40 % Marcus 60.% On July 1, 20xx Marshall is admitted to the partnership when he purchased proportionate interest from Manuel and Marcus in the net assets and profits of the partnership for P2,700,000. As a result Marshall acquired 1/3 interest in the net assets and profits of the firm.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College