The net income of the Jason and Browning partnership is $445000. The partnership agreement specifies that Jason and Browning have a salary allowance of $111000 and $185000, respectively. The partnership agreement also specifies an interest allowance of 10% on capital balances at the beginning of the year. Each partner had a beginning capital balance of $293000. Any remaining net income or net loss is shared equally. What is the balance of Browning's Capital account at the end of the year after net income has been divided? O $507300 O $552500 O $474300 O $519500

SWFT Comprehensive Vol 2020
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Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
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The net income of the Jason and Browning partnership is $445000. The partnership agreement specifies that Jason and Browning
have a salary allowance of $111000 and $185000, respectively. The partnership agreement also specifies an interest allowance of
10% on capital balances at the beginning of the year. Each partner had a beginning capital balance of $293000. Any remaining net
income or net loss is shared equally.
What is the balance of Browning's Capital account at the end of the year after net income has been divided?
$507300
$552500
$474300
$519500
Transcribed Image Text:The net income of the Jason and Browning partnership is $445000. The partnership agreement specifies that Jason and Browning have a salary allowance of $111000 and $185000, respectively. The partnership agreement also specifies an interest allowance of 10% on capital balances at the beginning of the year. Each partner had a beginning capital balance of $293000. Any remaining net income or net loss is shared equally. What is the balance of Browning's Capital account at the end of the year after net income has been divided? $507300 $552500 $474300 $519500
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