Question
Phuong and Yessenia have capital balances of $400,000 and $800,000, respectively. Phuong devotes three-fourths time and Yessenia one-fourth time to the business. Determine the division
Phuong and Yessenia have capital balances of $400,000 and $800,000, respectively. Phuong devotes three-fourths time and Yessenia one-fourth time to the business. Determine the division of $450,000 of net income when there is no agreement concerning division of net income.
| a. | $337,500 and $112,500 | |
| b. | $225,000 and $225,000 | |
| c. | $300,000 and $150,000 | |
| d. | $150,000 and $300,000 |
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Tobacco Industry IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304114910, 978-1304114914
