chapter 19

Alfred Hurley and Thomas Estes are partners who share profits and losses in the ratio of 75 to 25 percent, respectively. Their partnership agreement provides that each will be paid a yearly salary of $77.000. The salaries were paid to the partners during 201 and were charged to the partners' drawing accounts. The Income Summary account has a credit balance of $323,800 after revenue and expense accounts are closed at the end of the year. Required: What amount of net income or net loss will be allocated to each