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Farmer and Taylor formed a partnership with capital contributions of $280,000 and $330,000, respectively. Their partnership agreement calls for Farmer to receive a $86,000 per
Farmer and Taylor formed a partnership with capital contributions of $280,000 and $330,000, respectively. Their partnership agreement calls for Farmer to receive a $86,000 per year salary allowance. The remaining income or loss is to be divided equally. If the net income for the current year is $231,000, then Farmer and Taylor's respective shares of income are:
Select one:
a. $158,500; $72,500.
b. $115,500; $115,500.
c. $162,140; $42,860.
d. $154,000; $77,000.
e. $194,000; $37,000.
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