Question
Steve Queen and Chelsy Boxer formed a partnership, dividing income as follows: 1. Annual salary allowance to Queen of $111,510. 2. Interest of 6% on
Steve Queen and Chelsy Boxer formed a partnership, dividing income as follows:
1. Annual salary allowance to Queen of $111,510.
2. Interest of 6% on each partner's capital balance on January 1.
3. Any remaining net income divided to Queen and Boxer, 1:2.
Queen and Boxer had $60,000 and $99,000, respectively, in their January 1 capital balances. Net income for the year was $189,000. How much is distributed to Queen and Boxer?
Note: Compute partnership share.
Queen: $
Boxer: $
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
