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please complete 100% C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capitai accounts in the ENW partnership for
please complete 100%
C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capitai accounts in the ENW partnership for 201 were as follows: Required: For each of the following independent income-sharing agreements, prepare an income distribution schedule. a. Salaries are $16,700 to Eastwood, $20,700 to North, and $18,300 to West. Eastwood recelves a bonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of ending capital balances. Eastwood, North, and West divide any remainder in a 3:3:4 ratio, respectively. Net income was $80,220. b. Interest is 10 percent of weighted-average capital balances. Salaries are $25,000 to Eastwood, $21,800 to North, and $25,900 to West. North receives a bonus of 10 percent of net income after deducting the bonus and her salary. Any remainder is divided equally. Net income was $69,430. c. West receives a bonus of 20 percent of net income after deducting the bonus and the salaries. Salaries are $21,800 to Eastwood, $18,200 to North, and $15,800 to West. Interest is 10 percent of beginning capital balances. Eastwood, North, and West divide any remainder in an 8:7:5 ratio, respectively. Net income was $94,800 Step by Step Solution
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