and Y are partners who share profits equally and losses in a 4:2 ratio. However, bonus is first to be provided to Y at 5% of profit before income tax and before bonus. X and Y have beginning capital balances of P 200,000 and P 250,000, respectively, and made no withdrawals during a period of two years. Their partnership had resulted a loss of P 120,000 on its first year of operation but incurred a net profit (after tax of 30%) of P 210,000 on its second year of operation, the total capital of the partnership at the end of the second year of operation will be
and Y are partners who share profits equally and losses in a 4:2 ratio. However, bonus is first to be provided to Y at 5% of profit before income tax and before bonus. X and Y have beginning capital balances of P 200,000 and P 250,000, respectively, and made no withdrawals during a period of two years. Their partnership had resulted a loss of P 120,000 on its first year of operation but incurred a net profit (after tax of 30%) of P 210,000 on its second year of operation, the total capital of the partnership at the end of the second year of operation will be
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 48P
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X and Y are partners who share profits equally and losses in a 4:2 ratio. However, bonus is first to be provided to Y at 5% of profit before income tax and before bonus. X and Y have beginning capital balances of P 200,000 and P 250,000, respectively, and made no withdrawals during a period of two years. Their partnership had resulted a loss of P 120,000 on its first year of operation but incurred a net profit (after tax of 30%) of P 210,000 on its second year of operation, the total capital of the partnership at the end of the second year of operation will be
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT