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Carey and Drew formed a partnership on January 1, 2017. Carey invested $100,000, Drew s70,000. Each withdrew $12,000 These on each dates during 2017: February
Carey and Drew formed a partnership on January 1, 2017. Carey invested $100,000, Drew s70,000. Each withdrew $12,000 These on each dates during 2017: February 1, August 1, and November 1 withdrawals in total were equal to salaries for the year, Interest of 8 percent was to be paid partners on the basis of their average capital balances excluding net income. Additionally, Carey was to get a 20 percent bonus based on partnership net income after the bonus, but before the salaries and interest. Any remaining profit (or loss) was to be allocated equally among the partners. Required: If partnership net income was $150.000, how was it to be allocated between Carey and Drew? Order of allocation: bonus, salaries, interest, Residual. Round to the nearest whole dollar
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