Question
Anna, Peter and John formed a limited liability partnership in 2022. In 2023, the beginning capital balance of each partner was $27,000, $40,500 and $67,500
Anna, Peter and John formed a limited liability partnership in 2022. In 2023, the beginning capital balance of each partner was $27,000, $40,500 and $67,500 respectively. During 2023, the company earned a net income of $51,000. Anna withdrew $28,000, while Peter and John withdrew $39,000 and $36,000 respectively
a) Calculate the amount of net income each partner will receive based on the following independent scenarios. (i) The earnings are divided equally. (ii) Anna receives 35%, Peter receives 39%, and John receives 26% of the earnings. (iii) The earnings are divided based on the partner's capital balance at the beginning of the year. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Do not use the negative sign.
(i) | (ii) | (iii) | |
Anna | Answer | Answer | Answer |
Peter | Answer | Answer | Answer |
John | Answer | Answer | Answer |
b) Calculate the ending capital balance of each partner, assuming that method (ii) is used to divide earnings.
Anna | Peter | John | |
Beginning Capital Balance | Answer | Answer | Answer |
Add: Share of net income | Answer | Answer | Answer |
Subtotal | Answer | Answer | Answer |
Less: Withdrawals | (Answer) | (Answer) | (Answer) |
Ending Capital Balance | Answer | Answer | Answer |
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