Zaync receives a $36,000 annual salary and allowance and Perez receives an allowance of $24,000.

Each partner is allowed an annual interest allowance of 10% on their beginning capital balance.

Any remaining balance of income and loss is allocated equally.

Net income 70,000

 

How do they get the 6000 and 30000 10% and 1/2? 

Can you explain I felt confused about this problem?

P2 ALLOCATION ON SERVICES, CAPITAL, AND STATED RATIOS Net income Salaries Interest Equal allocation Income to each partner $30,000 10% = $3,000 $ Zayn 36,000 3,000 3,000 42,000 $6,000 x 12 = $3,000 Income Allocation Perez 24,000 1,000 3,000 28,000 Remainder 70,000 10,000 6,000 12-12