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Item Nos. 20 and 21 are based on the following information: In its first year of operations, the partnership of Li, Kwan, and Yu earned a profit of P 300,000 before providing salaries of P 60,000 and P 40,000 per annum for Li and Kwan, respectively. Their capital contributions and profit and loss sharing ratio are as follows: Capital Profit & Loss Ratio Li - P 500,000 40% Kwan 300,000 30% 200,000 P1,000,000 Yu- 30% 100% Total-- 20. How much of the profit should be distributed to Kwan? a. P 60,000. b. P 100,000. P 140,000. C. d. P 150,000.

Item Nos. 20 and 21 are based on the following information: In its first year of operations, the partnership of Li, Kwan, and Yu earned a profit of P 300,000 before providing salaries of P 60,000 and P 40,000 per annum for Li and Kwan, respectively. Their capital contributions and profit and loss sharing ratio are as follows: Capital Profit & Loss Ratio Li - P 500,000 40% Kwan 300,000 30% 200,000 P1,000,000 Yu- 30% 100% Total-- 20. How much of the profit should be distributed to Kwan? a. P 60,000. b. P 100,000. P 140,000. C. d. P 150,000.

SWFT Essntl Tax Individ/Bus Entities 2020
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 15P
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Item Nos. 20 and 21 are based on the following information: In its first year of operations, the partnership of Li, Kwan, and Yu earned a profit of P 300,000 before providing salaries of P 60,000 and P 40,000 per annum for Li and Kwan, respectively. Their capital contributions and profit and loss sharing ratio are as follows: Capital Profit & Loss Ratio Li - P 500,000 40% Kwan 300,000 30% Yu 200,000 30% Total-- P 1,000,000 100% 20. How much of the profit should be distributed to Kwan? P 140,000. a. P 60,000. C. b. P 100,000. d. P 150,000.
Transcribed Image Text:Item Nos. 20 and 21 are based on the following information: In its first year of operations, the partnership of Li, Kwan, and Yu earned a profit of P 300,000 before providing salaries of P 60,000 and P 40,000 per annum for Li and Kwan, respectively. Their capital contributions and profit and loss sharing ratio are as follows: Capital Profit & Loss Ratio Li - P 500,000 40% Kwan 300,000 30% Yu 200,000 30% Total-- P 1,000,000 100% 20. How much of the profit should be distributed to Kwan? P 140,000. a. P 60,000. C. b. P 100,000. d. P 150,000.
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