Question
The APB partnership agreement specifies that partnership net income be allocated as follows: A P B Salaries Allowance. . . . . . . .
The APB partnership agreement specifies that partnership net income be allocated as follows:
A
P
B
Salaries Allowance. . . . . . . . . . . . . . . . . . . . .
Interest on average capital balances . . . . . .
Remainder . . . . . . . . . . . . . . . . . . . . . . . . . . . .
P30,000
10%
40%
P10,000
10%
40%
P40,000
10%
20%
Average capital balances for the current year were P50,000 for A, P30,000 for P, and P20,000 for B.
Assuming a current year net income of P150,000, what amount should be allocated to Partner A?
The APB partnership agreement specifies that partnership net income be allocated as follows:
| A | P | B |
| Salaries Allowance. . . . . . . . . . . . . . . . . . . . . Interest on average capital balances . . . . . . Remainder . . . . . . . . . . . . . . . . . . . . . . . . . . . . | P30,000 10% 40% | P10,000 10% 40% | P40,000 10% 20% |
Average capital balances for the current year were P50,000 for A, P30,000 for P, and P20,000 for B.
Assuming a current year net income of P150,000, what amount should be allocated to Partner A?
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Intermediate Accounting
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-0176509736
