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eBook Show Me How Question Content Area Dividing Partnership Net Income Steve Jack and Chelsy Dane formed a partnership, dividing income as follows: Annual salary

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Dividing Partnership Net Income

Steve Jack and Chelsy Dane formed a partnership, dividing income as follows:

  1. Annual salary allowance to Jack of $165,300.
  2. Interest of 7% on each partner's capital balance on January 1.
  3. Any remaining net income divided to Jack and Dane, 1:2.

Jack and Dane had $60,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $285,000.

Required:

How much net income should be distributed to Jack and Dane? Jack: $fill in the blank 1 Dane: $fill in the blank 2

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