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Paddison and Warden have formed a partnership. During their first year of operations, the partnership earned $80,000. Their-profit-and-loss-sharing agreement states that, first, each partner
Paddison and Warden have formed a partnership. During their first year of operations, the partnership earned $80,000. Their-profit-and-loss-sharing agreement states that, first, each partner will receive 10% of their capital balances. The second level is based on services, with $22,000 to Paddison and $18,000 to Warden. The remainder then will be shared 4:1 between Paddison and Warden, respectively. Read the requirements. Requirement 1. Calculate the amount of income each partner will receive under their profit-and-loss-sharing agreement assuming Paddison's capital balance is $92,000 and Warden's capital balance is $92,000. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.)
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