The partnership agreement of Jones, King, and Lane provides for annual allocation of the business's profit or loss in the following sequence.

Jones, the managingpartner receives a bonus equal to 25 percent of the business profit

Each partner receives 12 percent interest on average capital investment

Any residual profit or loss is divided equally

The average capital investments for 2015 were as follows:

Jones $200,000

King 400,000

Lane 600,000

How much of the $88,000 partnership profit for 2015 should be assigned to each partner?

Income Assignment

Jones

King

Lane