Question
Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Stevens of $112,560. Interest of 7% on each partner's
Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows:
- Annual salary allowance to Stevens of $112,560.
- Interest of 7% on each partner's capital balance on January 1.
- Any remaining net income divided to Jack and Stevens, 1:2.
Jack and Stevens had $87,000 and $75,000, respectively, in their January 1 capital balances. Net income for the year was $201,000.
Required:
How much net income should be distributed to Jack and Stevens? Jack: $ Stevens: $
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Cost Accounting Fundamentals Essential Concepts And Examples
Authors: Steven M. Bragg
3rd Edition
0980069998, 978-0980069990
