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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 10 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 $ 190,000 380,000 570,000 The partnership earned $84,000 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 0 Interest 0 $ 0 Remainder to allocate 0 Total allocation $ $ 0 $ 0 $ 0 $ 0
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