A, B, and C's partnership agreement requires the partners to maintain average investments P2,500,000, P1,250,000, and P1,250,000, respectively. Six percent (6%) interest per annum is to be computed on any excess or deficiency in the contributions. After the interest allowances, any remaining profit or loss is shared in the ratio of 5:3:2. Average amounts invested during the first six months were as follows: A, P3,000,000; B, P1,375,000; and C, P1,000,000. Loss of P62,500 was incurred for the first six months. How is the loss distributed among the partners? A В а. 12,500 b. 18,375 с. 21,875 d. 31,250 10,000 21,875 18,375 18,750 49,500 22,250 22,250 12,500

A, B, and C's partnership agreement requires the partners to maintain average investments P2,500,000, P1,250,000, and P1,250,000, respectively. Six percent (6%) interest per annum is to be computed on any excess or deficiency in the contributions. After the interest allowances, any remaining profit or loss is shared in the ratio of 5:3:2. Average amounts invested during the first six months were as follows: A, P3,000,000; B, P1,375,000; and C, P1,000,000. Loss of P62,500 was incurred for the first six months. How is the loss distributed among the partners? A В а. 12,500 b. 18,375 с. 21,875 d. 31,250 10,000 21,875 18,375 18,750 49,500 22,250 22,250 12,500

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 55P

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