Question
Dividing Partnership Net Income Required: Steve Prince and Chelsy Poodle formed a partnership, dividing income as follows: Annual salary allowance to Prince of $178,770. Interest
Dividing Partnership Net Income
Required:
Steve Prince and Chelsy Poodle formed a partnership, dividing income as follows:
- Annual salary allowance to Prince of $178,770.
- Interest of 7% on each partner's capital balance on January 1.
- Any remaining net income divided to Prince and Poodle, 1:2.
Prince and Poodle had $51,000 and $111,000, respectively, in their January 1 capital balances. Net income for the year was $303,000. How much is distributed to Prince and Poodle?
Note: Compute partnership share. Prince: $ Poodle: $
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Operational Auditing For Management Control
Authors: Edward F Norbeck
1st Edition
0814451853, 978-0814451854
