Question
Dividing Partnership Net Income Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows: 1. Annual salary allowance to Jack of $65,000. 2.
Dividing Partnership Net Income
Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows:
1. Annual salary allowance to Jack of $65,000.
2. Interest of 9% on each partner's capital balance on January 1.
3. Any remaining net income divided equally.
Stevens and Jack had $53,000 and $174,000, respectively, in their January 1 capital balances. Net income for the year was $295,000. How much net income should be distributed to Jack?
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Fundamentals Of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
1st Edition
0072992573, 9780072992571
