Question
Steve Queen and Chelsy Boxer formed a partnership, dividing income as follows: Annual salary allowance to Queen of $136,950. Interest of 5% on each partner's
Steve Queen and Chelsy Boxer formed a partnership, dividing income as follows:
- Annual salary allowance to Queen of $136,950.
- Interest of 5% on each partner's capital balance on January 1.
- Any remaining net income divided to Queen and Boxer, 1:2.
Queen and Boxer had $75,000 and $99,000, respectively, in their January 1 capital balances. Net income for the year was $249,000. How much is distributed to Queen and Boxer?
Note: Compute partnership share. Queen: $ Boxer: $
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Cornerstones Of Financial Accounting
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone
2nd Canadian Edition
0176707123, 978-0176707125
