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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 15 percent of the business's profit. Each partner receives 20 percent interest on average capital investment. Any residual profit or loss is divided equally. . . The average capital investments for 2021 were as follows: Jones King Lane $ 180,000 240,000 300,000 The partnership earned $60,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners. (Loss amounts should be indicated with a minus sign.) Jones King Lane Total Net income Bonus Interest Remainder to allocate Total allocation
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