Question
Nancy and Betty enter into a partnership agreement where they decide to share profits according to the following? rules: ?(a) Nancy and Betty will receive
Nancy and Betty enter into a partnership agreement where they decide to share profits according to the following? rules: ?(a) Nancy and Betty will receive salaries of $ 1, 300 and $ 14, 500 respectively as the first allocation. ?(b) The next allocation is based on 10?% of each? partner's capital balances. ?(c) Any remaining profit or loss is to be allocated completely to Betty. The? partnership's net income for the first year is $ 50, 000. ?Nancy's capital balance is $ 99, 000 and? Betty's capital balance is $ 8, 000??at the end of the year. Calculate the share of? profit/loss to be allocated to Betty.
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