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On February 1 , 2 0 2 3 , Morgan, Bruce, and Mike began a partnership in which Morgan and Mike each contributed cash of

On February 1,2023, Morgan, Bruce, and Mike began a partnership in which Morgan and Mike each contributed cash of $25,000; and Bruce contributed property with a fair value of $50,000 and a tax basis $40,000. Bruce receives a 5% bonus of partnership income. Morgan and Mike receive salaries of $10,000 each. The partnership agreement of Morgan, Bruce, and Mike provides that all partners receive 5% interest on capital, and those profits and losses of the remaining income be distributed to Morgan, Bruce, and Mike by a 1:3:1 ratio.
Prepare a schedule to distribute $25,000 of partnership net income to the partners.
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