Question
X and Y invest $100,000 and $50,000 respectively in a partnership and agree to a division of net income that provides for an allowance of
X and Y invest $100,000 and $50,000 respectively in a partnership and agree to a division of net income that provides for an allowance of interest at 10% on original investments, salary allowances of $24,000 and $12,000 respectively, with the remainder divided at a 2:1 ratio. Show all computations.
What would be X's & Y's share of the following net income:
a.$60,000
b.$50,000
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
