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Dividing Partnership Net Income Steve Queen and Chelsy Poodle formed a partnership, dividing income as follows: 1. Annual salary allowance to Queen of $139,440. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Queen and Poodle, 1:2. Queen and Poodle had $75,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was Required: How much net income should be distributed to Queen and Poodle? Queen: $

Dividing Partnership Net Income Steve Queen and Chelsy Poodle formed a partnership, dividing income as follows: 1. Annual salary allowance to Queen of $139,440. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Queen and Poodle, 1:2. Queen and Poodle had $75,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was Required: How much net income should be distributed to Queen and Poodle? Queen: $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dividing Partnership Net Income Steve Queen and Chelsy Poodle formed a partnership, dividing income as follows: 1. Annual salary allowance to Queen of $139,440. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Queen and Poodle, 1:2. Queen and Poodle had $75,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was $249,000. Required: How much net income should be distributed to Queen and Poodle? Queen: $ Poodle: $
Transcribed Image Text:Dividing Partnership Net Income Steve Queen and Chelsy Poodle formed a partnership, dividing income as follows: 1. Annual salary allowance to Queen of $139,440. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Queen and Poodle, 1:2. Queen and Poodle had $75,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was $249,000. Required: How much net income should be distributed to Queen and Poodle? Queen: $ Poodle: $
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