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Cagney and Lacey are partners who share profits and losses in the ratio of 6:4, respectively. Cagneys salary is $40,000 and Laceys is $20,000. The

  1. Cagney and Lacey are partners who share profits and losses in the ratio of 6:4, respectively. Cagneys salary is $40,000 and Laceys is $20,000. The partners are also paid interest on their average capital balances. Cagney received $20,000 of interest and Lacey $8,000. The profit and loss allocation is determined after deductions for the salary and interest allocations. If Laceys share of partnership income was $80,000 for the year, what was the total partnership income?
  1. $130,000.
  2. $200,000.
  3. $218,000.
  4. $190,000.

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