Allocation of profit to partners Assume that there are three partners in a partnership, A, B, and C. Partner C provides services to the partnership and is entitled to a salary of $240,000. Assume that the partnership revenues less expenses (other than salary to Partner C) amount is $540,000. Finally, assume that the Partnership Agreement provides for a sharing ratio of 40%/40 % / 20% for Partners A, B, and C, respectively. Prepare a schedule for the allocation of profit to the partners.

Allocation of profit to partners Assume that there are three partners in a partnership, A, B, and C. Partner C provides services to the partnership and is entitled to a salary of $240,000. Assume that the partnership revenues less expenses (other than salary to Partner C) amount is $540,000. Finally, assume that the Partnership Agreement provides for a sharing ratio of 40%/40%/20% for Partners A, B and C, respectively. Prepare a schedule for the allocation of profit to the partners Allocation of Profe to Partners Excess of revenues over expenses Salary Allocation of residual profe Check Total allocation Total C Allocation Remaining