Question
Emerson and Dakota formed a partnership dividing income as follows: Annual salary allowance to Emerson of $44,000 Interest of 8% on each partner's capital balance
Emerson and Dakota formed a partnership dividing income as follows:
- Annual salary allowance to Emerson of $44,000
- Interest of 8% on each partner's capital balance on January 1
- Any remaining net income divided equally.
Emerson and Dakota had $29,400 and $148,300, respectively in their January 1 capital balances. Net income for the year was $202,000.
How much net income should be distributed to Emerson?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
