Question
Dividing Partnership Net Income Required: Steve Prince and Chelsy Boxer formed a partnership, dividing income as follows: Annual salary allowance to Boxer of $100,890. Interest
Dividing Partnership Net Income
Required:
Steve Prince and Chelsy Boxer formed a partnership, dividing income as follows:
- Annual salary allowance to Boxer of $100,890.
- Interest of 6% on each partner's capital balance on January 1.
- Any remaining net income divided to Prince and Boxer, 1:2.
Prince and Boxer had $93,000 and $99,000, respectively, in their January 1 capital balances. Net income for the year was $171,000. How much is distributed to Prince and Boxer?
Note: Compute partnership share. Prince: $ Boxer: $
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Advanced Accounting
Authors: Debra C. Jeter, Paul Chaney
2nd Edition
0471218529, 978-0471218524
