The partnership agreement of Angela and Dawn has the following provisions: 1. The partners are to earn

Question:

The agreement of Angela and Dawn has the following provisions:
1. The partners are to earn 10 percent on the average capital.
2. Angela and Dawn are to earn salaries of $25,000 and $15,000, respectively.
3. Any remaining income or loss is to be divided between Angela and Dawn using a 70:30 ratio. Angela's average capital is $50,000 and Dawn's is $30,000.

Required
Prepare an income schedule assuming the income of the is
(a) $80,000 and
(b) $20,000. If no agreement exists, what does the UPA 1997 prescribe as the profit or loss percentages?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...