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Steve Prince and Chelsy Dane formed a partnership, dividing income as follows: Annual salary allowance to Dane of $92,220. 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 $92,220. 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 $72,000 and $117,000, respectively, in their January 1 capital balances. Net income for the year was $159,000. How much is distributed to Prince and Dane? Note: Compute partnership share.
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