Question

Steve Jack and Chelsy Boxer formed a partnership, dividing income as follows: Annual salary allowance to Jack of $103,250. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Jack and Boxer, 1:2.

Jack and Boxer had $66,560 and $75,000, respectively, in their January 1 capital balances. Net income for the year was $175,000. How much is distributed to Jack and Boxer?

Answer #1

Steve | Chelsy | total | ||||

Jack | Boxer | |||||

opening capital balance | 66,560 | 75,000 | ||||

interest6% on opening bal | 6% | 6% | ||||

interest paid | 3994 | 4500 | 8494 | |||

annual salary to Jack | 103,250 | 0 | 103,250 | |||

total paid before net income | 111744 | |||||

net income in ratio of 1:2 | 21085 | 42171 | 63256 | |||

total paid . | 128329 | 46671 | 175000 | |||

net income | 175000-111,744 | |||||

63256 | ||||||

distribution to Jack | 128329 | |||||

Distribution to Boxer | 46,671 | |||||

uired: Steve Conyers and Chelsy Poodle formed a partnership,
dividing income as follows: Annual salary allowance to Poodle of
$135,090. Interest of 5% on each partner's capital balance on
January 1. Any remaining net income divided to Conyers and Poodle,
1:2. Conyers and Poodle had $51,000 and $93,000, respectively, in
their January 1 capital balances. Net income for the year was
$237,000. How much is distributed to Conyers and Poodle? Note:
Compute partnership share.
Conyers:...........
Poodle:...................

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follows:
Annual salary allowance to Emmett of $38,800
Interest of 8% on each partner's capital balance on January
1
Any remaining net income divided equally.
Emmett and Sierra had $23,200 and $145,700, respectively in
their January 1 capital balances. Net income for the year was
$231,900.
How much net income should be distributed to Emmett?
$fill in the blank 1

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Required:
Steve King and Chelsy Stevens formed a partnership, dividing
income as follows:
Annual salary allowance to Stevens of $100,650.
Interest of 6% on each partner's capital balance on January
1.
Any remaining net income divided to King and Stevens, 1:2.
King and Stevens had $45,000 and $99,000, respectively, in their
January 1 capital balances. Net income for the year was $183,000.
How much is distributed to King and Stevens?
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King: $...

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1. Annual salary allowance to Kyle, $50,000 and Andy, $45,000. 2.
Interest of 8% of each partnerâ€™s capital balance on January 1. 3.
Any remaining net income divided equally. Kyle and Andy had
$175,000 and $148,000, respectively, in their January 1 capital
balances. Net income for the year was $110,000. How much income
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Interest of 8% on each partnerâ€™s capital balance on January 1 3.
Any remaining net income divided equally Emmett and Sierra had
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balances. Net income for the year was $400,000. Required: How much
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Determine their participation in the year's net income of
$354,000 under each of the following independent assumptions:
A) Salary allowances of $81,000 and $111,000, respectively, and
the balance divided equally.
B) Allowance of interest at the rate of 18% on original
investments, salary allowances of $81,000 and $111,000,
respectively, and the remainder divided equally.
Hassell Lawson
A = _________ ________
B = _________ ________

ohn and Jack own a partnership. The partnership agreement
contains
the below facts. How much net income will be distributed to
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Net Income (20X5) = $ 420,000
Beginning Capital Balances (2004)
John 110,000.00
Jack 120,000.00
Partnership Agreement
1) John receives a $ 30,000 salary each year.
2) Each partner receives a 10% allowance based on
the partner's beginning capital balance.
3) Any remainder will be split based on a 6:4 split
(John = 6 & Jack = 4).
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Determine the division of a $22,000 net loss for the current
year, assuming remaining income or losses are shared equally by the
two partners. Use the minus sign to indicate any deductions or
deficiencies.
Leigh Meadows
Byron Leef
Total
Salary Allowance
$
$
$
Remainder
$
$
$
Net Loss
$
$
$

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Determine their participation in the year's net income of
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Divided in the ratio of original capital investment.
Interest at the rate of 6% allowed on original investments and
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Salary allowances of $38,000 and $47,000, respectively, and the
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Allowance of interest...

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