The partnership of Nguyen, Mendoza, Carlton, and Anderson has agreed to use the capital account balances shown in the graph as the basis for calculating the distribution of partnership earnings.

Instructions:
1. Using the percentage of total equity method, calculate the percentages for each partner that will be used to distribute partnership earnings. Round to the nearest tenth of a percent.
2. Determine each partner’s share of \($40,000\) net income.
3. Determine each partner's share of a \($30,000\) net loss.

Transcribed Image Text:

Partner Capital Account Balances 30000 Katie Nguyen Juan Mendoza 5000 James Carlton 15000 Carlee Anderson 10000 Total Equity 60000 0 20000 40000 60000 80000