Income Distribution of a Partnership (Appendix) Louise Abbott and Buddie Costello are partners in a comedy club business The partnership agreement specifies the manner in which income of the business is to be distributed Louise is to receive a salary of $20,000 for managing the club Buddie is to re...

1 If income is 15000 it should be distributed as follows Abbott Costello Salary to Ab ...

Income Distribution of a Partnership (Appendix) Louise Abbott and Buddie Costello are partners in a comedy club

Question:

Income of a (Appendix) Louise Abbott and Buddie Costello are partners in a comedy club business. The agreement specifies the manner in which income of the business is to be distributed. Louise is to receive a salary of $20,000 for managing the club. Buddie is to receive interest at the rate of 10% on her capital balance of $300,000. 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. $15,000
2. $50,000
3. $80,000

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...