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Dividing Partnership Net Income Steve Jack and Chelsy Bernard formed a partnership, dividing income as follows: 1. Annual salary allowance to Bernard of $143,550.
Dividing Partnership Net Income Steve Jack and Chelsy Bernard formed a partnership, dividing income as follows: 1. Annual salary allowance to Bernard of $143,550. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Bernard, 1:2. Jack and Bernard had $48,000 and $99,000, respectively, in their January 1 capital balances. Net income for the year was $261,000. Required: How much net income should be distributed to Jack and Bernard? Jack: S 70,400 X Bernard: $ 35,200 X
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