Question
Holly and Nicole formed a partnership with capital contributions of $280,000 and $380,000, respectively. Their partnership agreement calls for Holly to receive a $58,000 per
Holly and Nicole formed a partnership with capital contributions of $280,000 and $380,000, respectively. Their partnership agreement calls for Holly to receive a $58,000 per year salary allowance. Also, each partner is to receive an interest allowance equal to 10% of the partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $126,000, then Holly and Nicole's respective shares of income are: Multiple Choice $63,000; $63,000. $87,000; $39,000. $30,000; $96,000. $86,000; $38,000. $53,455; $72,545.
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