Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles...
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Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $27,000, and $18,000, respectively; and the remainder to be divided equally. How much of the net income of $81,000 is allocated to Xavier? Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $27,000, and $18,000, respectively; and the remainder to be divided equally. How much of the net income of $81,000 is allocated to Xavier?
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To calculate the allocation of net income to Xavier we need to follow the provisio... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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