Question
Steve Prince and Chelsy Dane formed a partnership, dividing income as follows: Annual salary allowance to Prince of $104,500. Interest of 5% on each partner's
Steve Prince and Chelsy Dane formed a partnership, dividing income as follows:
Annual salary allowance to Prince of $104,500.
Interest of 5% on each partner's capital balance on January 1.
Any remaining net income divided to Prince and Dane, 1:2.
Prince and Dane had $88,640 and $105,080, respectively, in their January 1 capital balances. Net income for the year was $190,000. How much is distributed to Prince and Dane?
Note: Compute partnership share to two decimal places. Round final answers to the nearest whole dollar.
Prince: Dane:
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Introduction To Financial Accounting
Authors: CHARLES T. HORNGREN AND ET ALL.
11th Edition
9352862473, 978-9352862474
