Question
Steve Queen and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Queen of $179,220. Interest of 6% on each partner's
Steve Queen and Chelsy Stevens formed a partnership, dividing income as follows:
- Annual salary allowance to Queen of $179,220.
- Interest of 6% on each partner's capital balance on January 1.
- Any remaining net income divided to Queen and Stevens, 1:2.
Queen and Stevens had $84,000 and $111,000, respectively, in their January 1 capital balances. Net income for the year was $309,000
How much net income should be distributed to Queen and Stevens?
Queen?
Stevens?
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Financial Accounting Text Only
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
5th Edition
0006575404, 978-0006575405
