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The partnership agreement of Powell, Gaunt, and Holl allows Gaunt a bonus of of income after the bonus. In addition, each Partner is allocated a
The partnership agreement of Powell, Gaunt, and Holl allows Gaunt a bonus of of income after the bonus. In addition, each Partner is allocated a salary of $30,000. Also, each partner receives interest of 6% on their average capital balances of $120,000, $150,000, and $180,000 for Powell, Gaunt, and Holl, respectively. Any remaining income is shared equally. Compute the Net Income to be allocated to each partner assuming the partnership income is $315,000.
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