Singer and McMann are partners in a business. Singer's original capital was $38,400 and McMann's was $58,600. They agree to salaries of $12,400 and $18,300 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses on a 3:2 ratio, what will McMann's share of the income be if the income for the year is $60,900? a.$18,300 b.$38,832 c.$32,360 d.$24,160

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
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Singer and McMann are partners in a business. Singer's original capital was $38,400 and McMann's was $58,600. They agree to salaries of $12,400 and $18,300 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses on a 3:2 ratio, what will McMann's share of the income be if the income for the year is $60,900?

a.$18,300
b.$38,832
c.$32,360
d.$24,160
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