The PQ partnership has the following plan for the distribution of partnership net income (loss):

Required:
Calculate the distribution of partnership net income (loss)for each independent situation below (for each situation,assume the average capital balance of P is $140,000 and of Q is $240,000).
1.Partnership net income is $360,000.
2.Partnership net income is $240,000.
3.Partnership net loss is $40,000.

Question

The PQ partnership has the following plan for the distribution of partnership net income (loss):
  
Required:
Calculate the distribution of partnership net income (loss)for each independent situation below (for each situation,assume the average capital balance of P is $140,000 and of Q is $240,000).
1.Partnership net income is $360,000.
2.Partnership net income is $240,000.
3.Partnership net loss is $40,000.

Quizplus · Accepted Answer

The Answer of The PQ partnership has the following plan for the distribution of partnership net income (loss):
  
Required:
Calculate the distribution of partnership net income (loss)for each independent situation below (for each situation,assume the average capital balance of P is $140,000 and of Q is $240,000).
1.Partnership net income is $360,000.
2.Partnership net income is $240,000.
3.Partnership net loss is $40,000.

The PQ Partnership Has the Following Plan for the Distribution