Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dividing Partnership Net Income John Prado and Ayana Nicks formed a partnership, dividing income as follows: Annual salary allowance to Prado, $10,000 and Nicks, $28,000.

Dividing Partnership Net Income

John Prado and Ayana Nicks formed a partnership, dividing income as follows:

  1. Annual salary allowance to Prado, $10,000 and Nicks, $28,000.
  2. Interest of 5% on each partner's capital balance on January 1.
  3. Any remaining net income divided equally.

Prado and Nicks had $20,000 and $50,000, respectively, in their January 1 capital balances. Net income for the year was $30,000.

Required:

How much net income should be distributed to Prado and Nicks? Prado: $ Nicks: $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: Dr Peter Atrill, Eddie Mclaney, Sin Autor

5th Edition

1405888210, 9781405888219

More Books

Students also viewed these Accounting questions

Question

Explain the process of MBO

Answered: 1 week ago