Income Distribution of a Partnership (Appendix) Kay Katz and Doris Kan are partners in a dry cleaning business The partnership agreement specifies the manner in which income of the business is to be distributed Kay is to receive a salary of $40,000 for managing the business Doris is to receive inte...

1 Katz Kan Salary to Katz 40000 Interest to Kan 10 600000 60000 Remainder in ...

Income Distribution of a Partnership (Appendix) Kay Katz and Doris Kan are partners in a dry-cleaning business.

Question:

Income of a (Appendix) Kay Katz and Doris Kan are partners in a dry-cleaning business. The agreement specifies the manner in which income of the business is to be distributed. Kay is to receive a salary of $40,000 for managing the business. Doris is to receive interest at the rate of 10% on her capital balance of $600,000. Remaining income is to be distributed at a 2-to-1 ratio.

Required
Determine the amount that should be distributed to each partner assuming the following business net incomes:
1. $30,000
2. $100,000
3. $160,000

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...