Emerson and Dakota formed a partnership dividing income as follows: Annual salary allowance to Emerson of $41,200 Interest of 10% on each partner's capital balance on January 1 Any remaining net income divided equally. Emerson and Dakota had $34,000 and $146,000, respectively, in their January 1 capital balances. Net income for the year was $232,800. How much net income should be distributed to Dakota? $fill in the blank 1

SWFT Individual Income Taxes
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ISBN:9780357391365
Author:YOUNG
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Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 6BCRQ
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Emerson and Dakota formed a partnership dividing income as follows:

  1. Annual salary allowance to Emerson of $41,200
  2. Interest of 10% on each partner's capital balance on January 1
  3. Any remaining net income divided equally.

Emerson and Dakota had $34,000 and $146,000, respectively, in their January 1 capital balances. Net income for the year was $232,800.

How much net income should be distributed to Dakota?
$fill in the blank 1

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