Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I don't know if these answers are correct; I'm having a hard time on the income-sharing ratio of 3:5. Could you please provide how you
I don't know if these answers are correct; I'm having a hard time on the income-sharing ratio of 3:5. Could you please provide how you got the answers. Thank you
Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $68,000 and $54,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:5. The two members withdrew amounts equal to their salary allowances. Revenues were $668,000 and expenses were $520,000, for a net income of $148,000. a. Determine the division of $148,000 net income for the year. Schedule of Division of Net Income Farley Clark Total Salary allowance 68,000 54,000 122,000 Remaining income 7,800 13.000 26.000 Net income 78.400 69,600 148.000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started