Question
Assume that K&R Associates divides income based on salary allowances and 10% interest on the capital balances of each partner (Kelly R. and Rose C.),
Assume that K&R Associates divides income based on salary allowances and 10% interest on the capital balances of each partner (Kelly R. and Rose C.), with any remaining net income allocated equally.
|
| Monthly Salary Allowance | Capital Balance on April 1, 2015 |
| Kelly R. | $3,000 | $100,000 |
| Rose C. | $2,000 | $150,000 |
For the December 31, 2020 fiscal year, determine the amount allocated to each partner using the information above if the partnership earned $280,000. Please show your working steps.
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Financial Accounting And Reporting A Global Perspective
Authors: Herv Stolowy, Yuan Ding
5th Edition
1473740207, 978-1473740204
