CC, DD, and EE, doctors, agree to form a partnership and to share profits in the ratio 5:3:2. They also agreed that EE is to be allowed a salary of P14,000 and that DD is to be guaranteed P10,500 as his share of the profits. During the first year of operation, income from fees are P90,000, while expenses total P48,000. What amount of net income should be credited to each partners’ capital account? CC DD EE a. P14,000 P 8,400 P 5,600 b. P12,500 P10,500 P19,000 c. P12,000 P11,000 P19,000 d. P12,500 P10,500 P19,500
CC, DD, and EE, doctors, agree to form a partnership and to share profits in the ratio 5:3:2. They also agreed that EE is to be allowed a salary of P14,000 and that DD is to be guaranteed P10,500 as his share of the profits. During the first year of operation, income from fees are P90,000, while expenses total P48,000. What amount of net income should be credited to each partners’ capital account? CC DD EE a. P14,000 P 8,400 P 5,600 b. P12,500 P10,500 P19,000 c. P12,000 P11,000 P19,000 d. P12,500 P10,500 P19,500
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BCRQ
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Question
CC, DD, and EE, doctors, agree to form a partnership and to share profits in the ratio 5:3:2.
They also agreed that EE is to be allowed a salary of P14,000 and that DD is to be
guaranteed P10,500 as his share of the profits. During the first year of operation, income
from fees are P90,000, while expenses total P48,000. What amount of net income should
be credited to each partners’ capital account?
CC DD EE
a. P14,000 P 8,400 P 5,600
b. P12,500 P10,500 P19,000 c. P12,000 P11,000 P19,000
d. P12,500 P10,500 P19,500
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