F and J are partners with capital balances of P30,000 and P70,000, respectively. F has a 30% interest in profits and losses. All assets of the partnership are at fair market value except equipment with book value of P300,000 and fair market value of P320,000. At this time, the partnership has decided to admit R and L as new partners. R contributes cash of P55,000 for a 20% interest in capital and a 30% interest in profits and losses. L contributes cash of P10,000 and an equipment with a fair market value of P50,000 for a 25% interest in capital and a 35% interest in profits and losses. Linda is also bringing special expertise and clients contact into the new partnership. Using the bonus method, what is the amount of bonus?

F and J are partners with capital balances of P30,000 and P70,000, respectively. F has a 30% interest in profits and losses. All assets of the partnership are at fair market value except equipment with book value of P300,000 and fair market value of P320,000. At this time, the partnership has decided to admit R and L as new partners. R contributes cash of P55,000 for a 20% interest in capital and a 30% interest in profits and losses. L contributes cash of P10,000 and an equipment with a fair market value of P50,000 for a 25% interest in capital and a 35% interest in profits and losses. Linda is also bringing special expertise and clients contact into the new partnership. Using the bonus method, what is the amount of bonus?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 55P

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