Albert, Barry and Chum form a partnership on January 1, 2016 investing 24,000, 16,000 and 16,000 respectively; profits are to be shared in the ratio of 2:1:1 respectively. It is agreed that 6% (1/2 of 1% per month) is to be charged on withdrawals that decrease capitals below the original investments. On March 1, Albert withdraws 8,000. Business is unsatisfactory and it is decided to dissolve the partnership. Partnership assets realized 8,000 and the accountant distributes this cash to the proper parties on November 1, 2016. All parties are solvent and proper settlement is made among partners on the same day. How much will Albert contribute to the partnership for the final settlement?

Albert, Barry and Chum form a partnership on January 1, 2016 investing 24,000, 16,000 and 16,000 respectively; profits are to be shared in the ratio of 2:1:1 respectively. It is agreed that 6% (1/2 of 1% per month) is to be charged on withdrawals that decrease capitals below the original investments. On March 1, Albert withdraws 8,000. Business is unsatisfactory and it is decided to dissolve the partnership. Partnership assets realized 8,000 and the accountant distributes this cash to the proper parties on November 1, 2016. All parties are solvent and proper settlement is made among partners on the same day. How much will Albert contribute to the partnership for the final settlement?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 47P

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