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The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: Jones, the
The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence:
- Jones, the managing partner, receives a bonus equal to 25 percent of the business's profit.
- Each partner receives 19 percent interest on average capital investment.
- Any residual profit or loss is divided equally.
The average capital investments for 2018 were as follows:
Jones$125,000
King250,000
Lane375,000
How much of the $58,000 partnership profit for 2018 should be assigned to each partner?
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