Question
Steve Conyers and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Conyers of $153,450. Interest of 7% on each partner's
Steve Conyers and Chelsy Stevens formed a partnership, dividing income as follows:
- Annual salary allowance to Conyers of $153,450.
- Interest of 7% on each partner's capital balance on January 1.
- Any remaining net income divided to Conyers and Stevens, 1:2.
Conyers and Stevens had $69,000 and $75,000, respectively, in their January 1 capital balances. Net income for the year was $279,000. How much is distributed to Conyers and Stevens?
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Financial Accounting For MBAs
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally
3rd Edition
0978727932, 978-0978727932
