Question
Steve Prince and Chelsy Dane formed a partnership, dividing income as follows: Annual salary allowance to Dane of $184,080. Interest of 5% on each partner's
Steve Prince and Chelsy Dane formed a partnership, dividing income as follows:
- Annual salary allowance to Dane of $184,080.
- 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 $96,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $312,000.
Required:
How much net income should be distributed to Prince and Dane? Prince: $fill in the blank 1 Dane: $fill in the blank 2
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Management Accounting A Business Planning Approach
Authors: Noah P. Barsky, Jr. Anthony H. Catanach
2nd Edition
1516506286, 978-1516506286
