The partnership agreement of Jones, King, and Lane provides for the annual allocation of the busi nesss

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The partnership agreement of Jones, King, and Lane provides for the annual allocation of the busi¬ ness’s profit or loss in the following sequence:

• Jones, the managing partner, receives a bonus equal to 20 percent of the business’s profit.

• Each partner receives 15 percent interest on average capital investment.

• Any residual profit or loss is divided equally.

The average capital investments for 2009 were as follows:

Jones.$100,000 King. 200,000 LO3 Lane. 300,000 How much of the $90,000 partnership profit for 2009 should be assigned to each partner?

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Advanced Accounting

ISBN: 9780073379456

9th Edition

Authors: Joe Ben Hoyle, Timothy S. Doupnik, Thomas F. Schaefer, Oe Ben Hoyle

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