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The PQ partnership has the following plan for the distribution of partnership net income (loss: Salaries $ 100,000 $80,000 Bonus on net income 6% 12%
The PQ partnership has the following plan for the distribution of partnership net income (loss: Salaries $ 100,000 $80,000 Bonus on net income 6% 12% Interest on average capital balances 7% 7% Remainder (if positive) 60% 40% Remainder (if negative) 50% 50% Required Calculate the distribution of partnership net income (loss) for each independent situation below (for each situation, assume the average capital balance of P is $140,000 and of Q is $240,000). Required Calculate the distribution of partnership net income (loss) for each independent situation below (for each situation, assume the average capital balance of P is $140,000 and of Q is $240,000). 1. Partnership net income is $360,000. 2. Partnership net income is $240,000
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