Question
Initial 1 2 3 4 5 6 Cash $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 Land 400,000 400,000 400,000 400,000 400,000 400,000 400,000 Building 2500000
| Initial | 1 | 2 | 3 | 4 | 5 | 6 | |
| Cash | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| Land | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 |
| Building | 2500000 | 2428030 | 2337121 | 2246212 | 2155303 | 2064394 | 1973485 |
| Debt | 2700000 | 2700000 | 2700000 | 2700000 | 2700000 | 2700000 | 2700000 |
| Capital, Kendra | 150000 | 114015 | 68561 | 28485 | -7879 | -44243 | -80687 |
| Capital, Pierson | 150000 | 114015 | 68561 | 17727 | -36818 | -91363 | -145908 |
| Depreciation expense | 71970 | 90909 | 90909 | 90909 | 90909 | 90909 | |
| Kendra's share | 35985 | 45455 | 36364 | 36364 | 36364 | ||
| Pierson's share | 35985 | 45455 | 54545 | 54545 | 54545 | ||
The following are the capital account balances for KP, LLC for the first six years: How will the gain be allocated to Kendra and Pierson if the partnership receives $150,000 and discharge of the debt? Show calculations. (That's all that is available) Some numbers might have been attempted .. Check logic
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Auditing A Modern Approach
Authors: Sanjay Basotia
1st Edition
938092903X, 978-9380929033
