Alaa, Sami and Ray, the partners in ASR Company, have capital balances on January 1, 2020 ofs110,000, S77,000 and $33,000 respectively. The net income for the year is $25,000.The partnership income-sharing agreement indicates:1. Annual salaries of $7,000 for Alaa, $5,500 for Sami, and $4,500 for Ray.2. Interest of 7% on beginning capital balances for all partners.3. Remaining income or loss to be shared based on the partner's beginning capital ratiosAlaa's portion of Net Income is:$12,000O $18,400O $17,000O $15,700None of the above

To calculate the share of Alaa, first, we have to calculate the net income after salary and interest…

Alaa, Sami and Ray, the partners in ASR Company, have capital balances on January 1, 2020 of s10,000, S77,000 and $33,000 respectively. The net income for the year is $25,000. The partnership income-sharing agreement indicates: 1. Annual salaries of S7,000 for Alaa, $5,500 for Sami, and $4,500 for Ray. 2. Interest of 7% on beginning capital balances for all partners. 3. Remaining income or loss to be shared based on the partner's beginning capital ratios Alaa's portion of Net Income is: * $12,000 $18,400 $17,000 $15,700 O None of the above

Alaa, Sami and Ray, the partners in ASR Company, have capital balances on January 1, 2020 of s10,000, S77,000 and $33,000 respectively. The net income for the year is $25,000. The partnership income-sharing agreement indicates: 1. Annual salaries of S7,000 for Alaa, $5,500 for Sami, and $4,500 for Ray. 2. Interest of 7% on beginning capital balances for all partners. 3. Remaining income or loss to be shared based on the partner's beginning capital ratios Alaa's portion of Net Income is: * $12,000 $18,400 $17,000 $15,700 O None of the above

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 57P

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