Question
Dividing Partnership Net Income Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Stevens of $154,560. Interest of
Dividing Partnership Net Income
Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows:
- Annual salary allowance to Stevens of $154,560.
- Interest of 5% on each partner's capital balance on January 1.
- Any remaining net income divided to Jack and Stevens, 1:2.
Jack and Stevens had $99,000 and $117,000, respectively, in their January 1 capital balances. Net income for the year was $276,000.
1. How much net income should be distributed to Jack and Stevens? Jack: Stevens:
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
