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What is the weighted-average capital for Willis and Rite in 2016? Willis and Rite share profits and losses equally. Willis and Rite receive salary allowances
What is the weighted-average capital for Willis and Rite in 2016?
Willis and Rite share profits and losses equally. Willis and Rite receive salary allowances of $20,000 and $30,000, respectively, and both partners receive 10% interest on their average capital balance. Willis is entitled to bonus of 5% after deduction of the bonus. Partners' drawings are not used in determine the average capital balances. Total net income for 2016 is $126,000. Additional investments of capital: August 1 What is the weighted-average capital for Willis and Rite in 2016? What will be the final profit allocations for Willis and Rite in 2016Step by Step Solution
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