Solution-What was the loss attributable to obi

What was the loss attributable to obi

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Reference no: EM132898761

Shinagawa Company was set up on March 31, 2019 with Jinawa investing equipment costing P200,000 with a current fair value of P300,000. Obi invested cash thrice Jinawa's contribution. Partners agreed that Obi is to receive an annual salary of P120,000 while Jinawa is to receive a 20% bonus. The remaining is to be shared according to their initial capital balances.

You are then required to compute for the following with its each respective assumption per year:

Problem 1: Net loss amounting to P60,000 was incurred in 2019. Consider that bonus is based on net income after salary. What was the loss attributable to Obi?

Problem 2: Net income amounting to P300,000 was earned in 2020. Consider that bonus is based on net income before salary and bonus. What was the profit distribution for Jinawa?

Problem 3: Net income amounting to P300,000 was also earned in 2021. Consider that bonus is based on net income after salary and bonus. What was the profit distribution for Jinawa?

Reference no: EM132898761

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What was the loss attributable to obi

Reference no: EM132898761

Reference no: EM132898761

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