Question

Show Me Dividing Partnership Net Income Steve King and Chelsy Dane formed a partnership, dividing income as follows Annual salary a 2- Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to King and Dane, 1:2 1 lowance to Dane of $85,500 King and Dane had $72,000 and $87,000, respectively, in their Janusry 1 capital balanoes. Net income for the year was $150,000. How much is distributed to king and Dane Note: Compute King of net income hat shouid be dstrbuted to each parther total of the selary and inrest alowances partners capital balace, and any emaining income divided based on the partnenhip agreement the net income is less than the amount as though twere a net loss net income to divide is a negiaive a All work saved

Answer 1

Salary to dhane 85500

Capitals and interest for the years

King 72000 interest 4320

Dane 87000 interest 5220

Particulars	King	Dane	total
Salary	0	85500	85500
Interest on capital	4320	5220	9640
Income from patnership	18287	36573	54860

Working for sharing of income from patnership

Net income 150000

Less

Salary 85500

Interest on capital 9640

Income for sharing 54860

Profit ratio for king 1/3

For Dane 2/3