Jake and Taylor are partners who share profits and losses in the ratio of 60:40, respectively. Jake's salary is $600,000 and $300,000 for Taylor. The partners are also paid interests on their capital balances. For the year, Jake received $300,000 of Interest and Taylor, $120,000. The profit and loss allocation is detemined after the deduction of salaries and interest. If Taylor’s share in the residual income (income after deducting salaries and interest) was $600,000, how much was the total partnership income? A. 1,920,000 B. 2,820,000 C. 3,450,000 D. 3,870,000
Jake and Taylor are partners who share profits and losses in the ratio of 60:40, respectively. Jake's salary is $600,000 and $300,000 for Taylor. The partners are also paid interests on their capital balances. For the year, Jake received $300,000 of Interest and Taylor, $120,000. The profit and loss allocation is detemined after the deduction of salaries and interest. If Taylor’s share in the residual income (income after deducting salaries and interest) was $600,000, how much was the total partnership income? A. 1,920,000 B. 2,820,000 C. 3,450,000 D. 3,870,000
Chapter21: Partnerships
Section: Chapter Questions
Problem 20CE
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Jake and Taylor are partners who share profits and losses in the ratio of 60:40, respectively. Jake's salary is $600,000 and $300,000 for Taylor. The partners are also paid interests on their capital balances. For the year, Jake received $300,000 of Interest and Taylor, $120,000. The
If Taylor’s share in the residual income (income after deducting salaries and interest) was $600,000, how much was the total
A. 1,920,000 B. 2,820,000 C. 3,450,000 D. 3,870,000
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ISBN:
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Author:
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Publisher:
CENGAGE LEARNING - CONSIGNMENT