Question
The partnership contract of A, B & C LLP provides for the remuneration of partners as follows: Salaries of $80,000 to A, $70,000 to B,
The partnership contract of A, B & C LLP provides for the remuneration of partners as follows: Salaries of $80,000 to A, $70,000 to B, and $60,000 to C, to be recognized annually as operating expense of the partnership in the measurement of net income, Bonus of 10% of income after salaries and before bonus to A, and Remaining net income or loss 30% to A, 20% to B, and 50% to C. Income of A, B & C LLP before partners salaries and As bonus was $430,000 for the fiscal year ended December 31, 2020.the amount of As bonus is:
Select one:
a.
$122,000.
b.
$20,000.
c.
$100,000.
d.
$22,000.
The balance sheet of Man Company on January 31, 2020, showed net assets of $740,000. On that date, Man merged with San Corporation in a business combination in which San issued 35,000 shares of its $1 par (current fair value $20 a share) common stock to stockholders of Man in exchange for all their outstanding common stock. The current fair values of Mans assets and liabilities were equal to their carrying amounts. San paid direct out-of-pocket costs of the business combination, $40,000, and costs of registering and issuing its common stock, $70,000.The amount of goodwill is:
a.
$40,000.
b.
$70,000.
c.
$30,000.
d.
$0.
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