Question
Steve Prince and Chelsy Poodle formed a partnership, dividing income as follows: Annual salary allowance to Poodle of $160,050. Interest of 6% on each partner's
Steve Prince and Chelsy Poodle formed a partnership, dividing income as follows: Annual salary allowance to Poodle of $160,050. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Prince and Poodle, 1:2. Prince and Poodle had $57,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $291,000.
Required: How much net income should be distributed to Prince and Poodle? Prince:
Poodle:
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Accounting Theory Conceptual Issues In A Political And Economic Environment
Authors: Harry I. Wolk, James L. Dodd, John J. Rozycki
7th Edition
1412953456, 978-1412953450
