Use the following to answer questions

The APB partnership agreement specifies that partnership net income be allocated as follows:

Average capital balances for the current year were $50,000 for A, $30,000 for P, and $20,000 for B.

If net income is $150,000, how much income is allocated to each partner? Show all computations.

Salary allowance Interest on average capital balances Remainder Partner A $30,000 10% 40% Partner P $10,000 10% 40% Partner B $40,000 10% 20%