ack and lill trade as partners in retail

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter21: Partnerships
Section: Chapter Questions
Problem 22CE
icon
Related questions
Question
Jack and Jill trade as partners in a retail
business.
As per the partnership agreement profits will be
distributed after allowing salary of $20,000 to
Jack and $15000 to Jill; and interest on capital
10% (Jack contributed %100,000, Jill contributed
$50,000).
Partnership adjustable income (distributable
amount) was $80,000.
Additional information: Jill has loaned $40,000
to the partnership 5 years ago (used for business
purposes) with the interest rate of 4% p.a.
Calculate Partnership net income and Jack &
Jill's assessable income only (ignore tax credits).
Transcribed Image Text:Jack and Jill trade as partners in a retail business. As per the partnership agreement profits will be distributed after allowing salary of $20,000 to Jack and $15000 to Jill; and interest on capital 10% (Jack contributed %100,000, Jill contributed $50,000). Partnership adjustable income (distributable amount) was $80,000. Additional information: Jill has loaned $40,000 to the partnership 5 years ago (used for business purposes) with the interest rate of 4% p.a. Calculate Partnership net income and Jack & Jill's assessable income only (ignore tax credits).
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Diversified International Auditing and Reporting Requirements
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 Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage