Emerson and Dakota formed a partnership dividing income as follows: 1. Annual salary allowance to Emerson of $33,200 2. Interest of 10% on each partner's capital balance on January 1 3. Any remaining net income divided equally. Emerson and Dakota had $26,400 and $150,000, respectively, in their January 1 capital balances. Net income for the year was $234,000. How much net income should be distributed to Dakota?
Emerson and Dakota formed a partnership dividing income as follows: 1. Annual salary allowance to Emerson of $33,200 2. Interest of 10% on each partner's capital balance on January 1 3. Any remaining net income divided equally. Emerson and Dakota had $26,400 and $150,000, respectively, in their January 1 capital balances. Net income for the year was $234,000. How much net income should be distributed to Dakota?
Chapter21: Partnerships
Section: Chapter Questions
Problem 7BCRQ
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