Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mike and Michelle who are partners in a business paid the following annuities to former employees and partners and their dependants: R - Abel, a

Mike and Michelle who are partners in a business paid the following annuities to former employees and partners and their dependants:

R

- Abel, a former partner who retired after ten years (not the repayment of his share) 30 000

- Bennie, the widow of a deceased employee and her two children 12 000

- Carlos, a retired employee 8 000

Mike and Michelle share the profits and losses in the ratio of 60:40, respectively.

Required:

Calculate the amounts that both partners can claim as deductions.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

total amount to be deducted 300... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Risk Management And Insurance

Authors: George E. Rejda, Michael McNamara

12th Edition

132992914, 978-0132992916

More Books

Students also viewed these Accounting questions

Question

3. Are psychopaths anxious?

Answered: 1 week ago

Question

What is a joint underwriting association (JUA)?

Answered: 1 week ago