Question
Anna, Paul and Jackson formed a limited liability partnership in 2019. In 2020, the beginning capital balance of each partner was $21,000, $31,500 and $52,500
Anna, Paul and Jackson formed a limited liability partnership in 2019. In 2020, the beginning capital balance of each partner was $21,000, $31,500 and $52,500 respectively. During 2020, the company earned a net income of $60,000, and Anna withdrew $24,000 while Paul and Jackson withdrew $45,000 and $36,000 respectively a) Calculate the amount of net income each partner will receive based on the following independent scenarios. (i) the earnings are divided equally. (ii) Anna receives 33%, Paul receives 39%, and Jackson receives 28% 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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