Question
Dividing Partnership Net Income Required: Steve King and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to King of $192,930. Interest
Dividing Partnership Net Income
Required:
Steve King and Chelsy Stevens formed a partnership, dividing income as follows:
- Annual salary allowance to King of $192,930.
- Interest of 7% on each partner's capital balance on January 1.
- Any remaining net income divided to King and Stevens, 1:2.
King and Stevens had $69,000 and $99,000, respectively, in their January 1 capital balances. Net income for the year was $327,000. How much is distributed to King and Stevens?
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Basic Food And Beverage Cost Control
Authors: Jack E. Miller, David K. Hayes
1st Edition
0471579181, 978-0471579182
