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1. (20 pts) Shirly, Curley, and Burley are partners sharing profits and losses 40/40/20 respectively. Their capital balances are: Shirley 175,000 Curley 300,000 Burley 275,000
1. (20 pts) | Shirly, Curley, and Burley are partners sharing profits and losses 40/40/20 respectively. | |||||||
Their capital balances are: | ||||||||
Shirley | 175,000 | |||||||
Curley | 300,000 | |||||||
Burley | 275,000 | |||||||
750,000 |
d. | In the first year after Furley's entrance under the conditions outlined in 'c' above, an agreement was made | |||||||||
to share profits, whereby Burley gets a salary of $40,000, and each partner receives 10% interest on their | ||||||||||
beginning capital balances with the remainder shared equally. Unfortunately, there was a loss of $200,000. | ||||||||||
The agreement was silent on how to share losses. | ||||||||||
Prepare a schedule showing how the loss will be shared. |
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