Question
Emmett and Sierra formed a partnership dividing income as follows: Annual salary allowance to Emmett of $35,400 Interest of 8% on each partner's capital balance
Emmett and Sierra formed a partnership dividing income as follows: Annual salary allowance to Emmett of $35,400 Interest of 8% on each partner's capital balance on January 1 Any remaining net income divided equally.
Emmett and Sierra had $26,600 and $148,800, respectively in their January 1 capital balances. Net income for the year was $233,200.
How much net income should be distributed to Emmett?
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
