Question
Andrew Orr and Victoria Graham formed a partnership, dividing income as follows: Annual salary allowance to Orr of $28,000. Interest of 6% on each partner's
Andrew Orr and Victoria Graham formed a partnership, dividing income as follows:
- Annual salary allowance to Orr of $28,000.
- Interest of 6% on each partner's capital balance on January 1.
- Any remaining net income divided to Orr and Graham, 2:1.
Orr and Graham had $60,000 and $150,000, respectively, in their January 1 capital balances. Net income for the year was $46,000.
How much net income should be distributed to Orr?
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Principles Of Financial Accounting Ch 1 17
Authors: Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton
1st Edition
0077370457, 9780077370459
