Question
X and Y have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division
X and Y have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income.: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net loss of $6000.00 is allocated to X?
Someone answered me with the following but I need more
information on how they got to it. Please can someone shed some light? I've
been stuck on this for 3 hours!
Please explain this answer
6000+150000*.1+27000+18000 = 66000/2 = 33000-5000-27000 = $1000 loss to X
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