Adrian and Nino formed a Partnership . Upon formation Adrian contributed 200,000 and Nino contributed 300,000 . At the end of the current year 2016 , Adrian and Nino's capital is 250,000 and 500,000 respectively. Their profit and loss agreement has the following provisions: The partners are given monthly salaries of 1,000 each. All partners will be given 20 % interest on original capital. Bonus of 25 % of Net Income will be given to Adrian. The balance will be divided equally A. Assuming that the company resulted in a net loss of 300, in 2016: 1. What is the share of Adrian in Net Profit or Net Loss for 2016? 2. What is the share of Nino in Net Profit or Net Loss for 2016? B. Assuming that the company resulted in a profit of 300.000 in 2016: 1. What is the share of Adrian in Net Profit or Net Loss for 2016? 2. What is the share of Nino in Net Profit or Net Loss for 2016?
Adrian and Nino formed a Partnership . Upon formation Adrian contributed 200,000 and Nino contributed 300,000 . At the end of the current year 2016 , Adrian and Nino's capital is 250,000 and 500,000 respectively. Their profit and loss agreement has the following provisions: The partners are given monthly salaries of 1,000 each. All partners will be given 20 % interest on original capital. Bonus of 25 % of Net Income will be given to Adrian. The balance will be divided equally A. Assuming that the company resulted in a net loss of 300, in 2016: 1. What is the share of Adrian in Net Profit or Net Loss for 2016? 2. What is the share of Nino in Net Profit or Net Loss for 2016? B. Assuming that the company resulted in a profit of 300.000 in 2016: 1. What is the share of Adrian in Net Profit or Net Loss for 2016? 2. What is the share of Nino in Net Profit or Net Loss for 2016?
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 41P
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Adrian and Nino formed a Partnership . Upon formation Adrian contributed 200,000 and Nino contributed 300,000 . At the end of the current year 2016 , Adrian and Nino's capital is 250,000 and 500,000 respectively.
Their profit and loss agreement has the following provisions:
The partners are given monthly salaries of 1,000 each.
All partners will be given 20 % interest on original capital.
Bonus of 25 % of Net Income will be given to Adrian.
The balance will be divided equally
A. Assuming that the company resulted in a net loss of 300, in 2016:
1. What is the share of Adrian in Net Profit or Net Loss for 2016?
2. What is the share of Nino in Net Profit or Net Loss for 2016?
B. Assuming that the company resulted in a profit of 300.000 in 2016:
1. What is the share of Adrian in Net Profit or Net Loss for 2016?
2. What is the share of Nino in Net Profit or Net Loss for 2016?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT