Question
A. Anna, P. Peter and J. Jackson formed a partnership in 2015. In 2017, the beginning capital balance of each partner was $25,000, $35,000 and
A. Anna, P. Peter and J. Jackson formed a partnership in 2015. In 2017, the beginning capital balance of each partner was $25,000, $35,000 and $30,000 respectively. During 2017, the company earned a net income of $63,000, and A. Anna withdrew $25,000 while P. Peter and J. Jackson withdrew $40,000 and $35,000 respectively. Required a) Calculate the amount of net income each partner will receive based on the following independent scenarios.
(i) the earnings are divided equally
(ii) A. Anna receives 30%, P. Peter receives 40%, and J. Jackson receives 30% of the earnings
(iii) the earnings are divided based on the partner's capital balance at the beginning of the year
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