Question
Stone and Mill have decided to form a partnership. They are in the process of agreeing on how the profits/losses will be divided. Assume that
Stone and Mill have decided to form a partnership. They are in the process of agreeing on how the profits/losses will be divided. Assume that the company is anticipating net income of $75,000 for the first time period. Determine Stone's share of the net income if the partner's agree on a annual salary allowance of $31,000 for Stone and $23,000 for Mill and the remainder equally.
| Stone | Mill | Total |
Salary Allowances | 31,000 | 23,000 |
|
Remainder Equally |
|
|
|
Totals | ? |
| $75,000 |
A. $41,500 B. $36,500 C. $33,500 D. $54,000
Can someone please show me step by step how to get the answer ($41,500)
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