Partner X, Y, and Z entered into partnership business on January 1, 2021. The capital investement by all partners is given below: Partner X $100,000 Partner Y $75,000 Partner Z $25,000 Each partner spends time to manage the business. On December 31, 2021, the business had a net income of $350000. The partners agreed to share the net income/net loss as follows: Each partner will receive a salary of $5000 per month. 5% interest of capital will be given to each partner. The remainder of net income/net loss will be divided equally by the partners. Required: Show the net income allocation for each partner.

Partner X, Y, and Z entered into partnership business on January 1, 2021. The capital investement by all partners is given below: Partner X $100,000 Partner Y $75,000 Partner Z $25,000 Each partner spends time to manage the business. On December 31, 2021, the business had a net income of $350000. The partners agreed to share the net income/net loss as follows: Each partner will receive a salary of $5000 per month. 5% interest of capital will be given to each partner. The remainder of net income/net loss will be divided equally by the partners. Required: Show the net income allocation for each partner.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 39P

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