Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rachael and Olivia are business partners in RO Dance. Their partnership agreement states that the partners will share income in a 3:2 ratio (Rachael; Olivia).

image text in transcribed
Rachael and Olivia are business partners in RO Dance. Their partnership agreement states that the partners will share income in a 3:2 ratio (Rachael; Olivia). For the year ended December 31, 2021, the partnership earned $120,000. During 2021, Rachael withdrew $20,000 cash from the business and Olivial withdrew $10,000 cash. How much income would be allocated to Olivia? OA) $49,000 B) $50,000 OC) $38,000 D) $52,000 E) $80,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

GAO Financial Audit Manual Volume 3 June 2018

Authors: United States Government GAO

2018 Edition

979-8733166001

More Books

Students also viewed these Accounting questions

Question

Distinguish between poor and good positive and neutral messages.

Answered: 1 week ago

Question

Describe the four specific guidelines for using the direct plan.

Answered: 1 week ago