Zilky and Justin Formed a Partnership on December 31,2013

question 8

Essay

Zilky and Justin formed a partnership on December 31,2013.Zilky contributed $50,000 cash and accounts receivable with a fair market value of $10,000.Justin's investment consisted of: cash,$5,000; inventory,$34,000; and supplies,$1,000-all at fair market values.Net income for 2014 and 2015 was $50,000 and $65,000,respectively.
Calculate the allocation of net income for 2014 and 2015,assuming net incomes are divided as follows:
(A)The partners have no agreement.
(B)Based on a 1:3 ratio.
(C)Based on the ratio of the partners' original investments.
(D)Interest allowances of 10% on their original investments,salary allowances to Zilky of $14,000 and Justin of $11,000,and the remainder to be divided equally.

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Definitions:

Masking Stimuli

External stimuli that interfere with the perception of other stimuli, making them less likely to be noticed.

Subliminal Stimulation

The process of receiving messages or stimuli below the threshold of conscious awareness.

Masking Stimuli

Stimuli that interfere with the perception of other stimuli, often used in psychological experiments to test sensory detection and processing.

Sensory Adaptation

A method where sensory detectors decrease their sensitivity to unchanging stimuli over time, enabling organisms to concentrate on environmental changes.