Question
McGill and Smyth have capital balances on January 1 of $48,000and $38,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $17,000for McGill
McGill and Smyth have capital balances on January 1 of $48,000and $38,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $17,000for McGill and $14,000for Smyth, (2) interest at10% on beginning capital balances, and (3) remaining income or loss to be shared70% by McGill and30% by Smyth.
(1)Schedule showing the distribution of net income, assuming net income is $86,000.(If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).)
(2) Schedule showing the distribution of net income, assuming net income is $23,000.(If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).)
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