Partners A and B allocate annual partnership income as follows. Each partner receives 20% of their beginning capital balances. Each partner also receives a $10,000 salary. Remaining income is distributed 60% to partner A and 40% to partner B. If current year net income is $58,000 and beginning capital balance for A and B are $90,000 and $75,000, respectively, how much net income is allocated to partner B?
Partners A and B allocate annual partnership income as follows. Each partner receives 20% of their beginning capital balances. Each partner also receives a $10,000 salary. Remaining income is distributed 60% to partner A and 40% to partner B. If current year net income is $58,000 and beginning capital balance for A and B are $90,000 and $75,000, respectively, how much net income is allocated to partner B?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Partners A and B allocate annual partnership income as follows. Each partner receives 20% of their beginning capital balances. Each partner also receives a $10,000 salary. Remaining income is distributed 60% to partner A and 40% to partner B. If current year net income is $58,000 and beginning capital balance for A and B are $90,000 and $75,000, respectively, how much net income is allocated to partner B?
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