Question
Dividing Partnership Net Income Required: Steve Prince and Chelsy Poodle formed a partnership, dividing income as follows: Annual salary allowance to Prince of $92,340. Interest
Dividing Partnership Net Income
Required:
Steve Prince and Chelsy Poodle formed a partnership, dividing income as follows:
- Annual salary allowance to Prince of $92,340.
- Interest of 6% 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 $162,000. How much is distributed to Prince and Poodle?
Note: Compute partnership share. Prince: $ Poodle: $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting IFRS Principles
Authors: Ilse Lubbe, Goolam Modack, Alex Watson
4th Edition
0199049238, 9780199049233
