Question

Show Me How Calculator Dividing Partnership Net Income Required: Steve Queen and Chelsy Dane formed a partnership dividing income as follows: 1. Annual salary allowance to Dane of $102,300 2. Interest of 7% on each partner's capital balance on January 1. 3. Any remaining net income divided to Queen and Dane, 1:2 Queen and Dane had $93,000 and $75,000, respectively, in their January 1 Capital balance Net Income for the year was 186,000. How much is distributed to Queen and Dane? Note: Comoute partnershi share Queen: Dane: Check My Work more Check My Workesromaining Previous Next >
help me solve this please!

Answer 1

--Requirement

Queen	$30,490
Dane	$155,510

--Working

	Queen	Dane	Net Income distributed	Remaining net income balace
Net Income				$186,000
Salary Allowance		$102,300	$102,300	$83,700
Interest on Capital	$6,510	$5,250	$11,760	$71,940
Remaining Net Income $ 71940 in ratio of 1:2	$23,980	$47,960	$71,940	$0
Partnership share	$30,490	$155,510	$186,000