Question
I have another question. I have tried this many times but still get the wrong answer. for 1. I get Abbott : -23,333 and Costello:
I have another question. I have tried this many times but still get the wrong answer. for 1. I get Abbott : -23,333 and Costello: - 11,667. Please help.
Louise Abbott and Buddie Costello are partners in a comedy club business. The partnership agreement specifies the manner in which income of the business is to be distributed. Louise is to receive a salary of $20,000 for managing the club. Buddie is to receive interest at the rate of 10% on her capital balance of $300,000. Remaining income is to be distributed at a 2-to-1 ratio.
Required:
Determine the amount that should be distributed to each partner assuming the following business net incomes:
Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Indicate losses with a minus sign.
Income Level | Abbott's Total Share | Costello's Total Share |
1. $15,000 | $ | $ |
2. $50,000 | $ | $ |
3. $80,000 | $ | $ |
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