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Thor and Hulk formed a consulting partnership. They are profits and losses according to their partnership agreement which states: Thor receives a salary allowance of
Thor and Hulk formed a consulting partnership. They are profits and losses according to their partnership agreement which states:
- Thor receives a salary allowance of $65,000
- Hulk receives a salary allowance of $100,000 and an interest allowance of $45,000
- Any remaining unallocated profits/losses are shared 50/50
Profits for the year ending December 31, 2020 were $335,000. Use the profit allocation table below to determine how much of the profit is allocated to Thor and how much is allocated to Hulk.
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