A partnership is owned by mother 60 and son 40 capital


Question - A partnership is owned by mother 60% and son 40%. Capital accounts maintained in the same ratio. Son received ownership interest as a gift from mother several years ago. Partnership income for the current year was 50,000. Mother performed services valued at 10,000 but no entry on the book and no cash received. What amount should be allocated to the mother?

20,000

30.000

34,000

40,000

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Accounting Basics: A partnership is owned by mother 60 and son 40 capital
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