50.1K

Verified Solution

Link Copied!

answer part B

Problem 14-24 (LO. 2, 3) The Parakeet Partnership was formed on August 1 of the current year and admitted Morlan and Merriman as equal partners on that date. The parthers both contributed $300,000 of cash to establish a children's clothing store in the local mall. The partners spent August and September buying imventory, equipment, supplies, and advertising for their "Grand Opening" on October 1. The partnership will use the accrual method of accounting. The following are some of the costs incurred during the partnership's first year of operations. Parakeet uses a calendar tax year. Assume a calendar year-end. In adoition, on October 1, the partnership purchased all of the assets of Granny Newcombs, Inc. Of the total purchase price for these msets; 3200,000 was allocated to the Granny Newcombs trade name and logo. In addition, on October 1, the partnership purchased all of the assets of Granny Newcombs, Inc. Of the total purchase price for these assets, $200,000 was allocated to the Granny Newcombs trade name and logo. a. For each listed items, select the applicable tax treatment from the dropdown list. b. Enter the amount of for each category listed below. Round any division to two decimal places. Round final answers to the nearest dollar b. Enter the amount of for each category listed below. Round any division to two decimal places. Round final answers to the nearest dollar. Determine the total amount of organizational costs. $ Determine the total amount of startup costs. $ x Determine the total amount of $162 expenses. $ x Determine the total amount of amortization expense for the current year related to section 197 assets. $ Determine the total amount of deductible guaranteed payments. s

Answer & Explanation Solved by verified expert

See Answer