Dividing Partnership Net IncomeRequired:Steve Conyers and Chelsy Dane formed a partnership, dividing income as follows:Annual salary allowance to Dane of $172,260.Interest of 6% on each partner's capital balance on January 1.Any remaining net income divided to Conyers and Dane, 1:2.Conyers and Dane had $87,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $297,000. How much is distributed to Conyers and Dane?Note: Compute partnership share.Conyers: $Dane: $

Please see the below computation for the distribution of share to Conyers and Dane -

Answered: Dividing Partnership Net Income…

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

Required:

Steve Conyers and Chelsy Dane formed a partnership, dividing income as follows:

Annual salary allowance to Dane of $172,260.
Interest of 6% on each partner's capital balance on January 1.
Any remaining net income divided to Conyers and Dane, 1:2.

Conyers and Dane had $87,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $297,000. How much is distributed to Conyers and Dane?

Note: Compute partnership share.
Conyers: $
Dane: $

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