Question
Alistair, Macher, and Brown have capital balances of $20,000, $30,000, and $50,000, respectively. The partners share profits and losses as follows: a. The first $40,000
Alistair, Macher, and Brown have capital balances of $20,000, $30,000, and $50,000, respectively. The partners share profits and losses as follows: a. The first $40,000 is divided based on the partners' capital balances b. The next $40,000 is based on service, shared equally by Alistair and Brown. Macher does not receive a salary allowance. c. The remainder is divided equally. Read the requirements. Requirement 1. Compute each partner's share of the $95,000 net income for the year. (Complete all answer boxes. For amounts that are $0, make sure to enter "O" in the appropriate column.) Alistair Macher Brown Total 95000 Net income (loss) Capital allocation: Alistair Macher Brown Salary allowance: Alistair Macher Brown Total salary and capital allocation: Net income (loss) remaining for allocation: Remainder shared equally: Alistair Macher Brown Total allocation: Net income (loss) remaining for allocation: Net income (loss) allocated to the partners:
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