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 $200,000. Assume that the partnership revenues less expenses (other than salary to Partner C) amount is $500,000. Finally, assume that the Partnership Agreement provides for a sharing ratio 40%40%20% for Partners A, B, and C, respectively. Prepare a schedule for the allocation of Profit to the partners.