A, B and C formed a partnership. A contributed 600,000 cash, B contributed inventories costing 1,000,000 and with a fair value of 800,000 and C contributed equipment worth 2,000,000 with corresponding note payable of 1,400,000. If the partners agreed that A will receive 40% ownership and B and C will get 30% each. What is the amount of bonus to A?
A, B and C formed a partnership. A contributed 600,000 cash, B contributed inventories costing 1,000,000 and with a fair value of 800,000 and C contributed equipment worth 2,000,000 with corresponding note payable of 1,400,000. If the partners agreed that A will receive 40% ownership and B and C will get 30% each. What is the amount of bonus to A?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 23P
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Transcribed Image Text:A, B and C formed a partnership. Acontributed 600,000 cash, B contributed
inventories costing 1,000,000 and with a fair value of 800,000 and C contributed
equipment worth 2,000,000 with corresponding note payable of 1,400,000. If the
partners agreed that Awill receive 40% ownership and B and C will get 30% each.
What is the amount of bonus to A?
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