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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 interest allowance of 10% on the original investments and annual salary allowance of $31,000 for Stone and $23,000 for Mill with the remainder equally. Further assume an original investment of $30,000 for Stone and $24,000 for Mill.

Stone

Mill

Total

Interest Allowances (10%)

Salary Allowances

$31,000

$23000

Remainder Equally

Totals

?

$75,000

A. $33,200 B. $37,500 C. $41,800 D.$45,000

What are the steps to this question {answer $41,800}

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