The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix, the managing partner, receives a salary allowance of $10800O, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Alix $602000, Gise $1190000, and Bosco $1798000. If partnership net income is $735000, the amount allocated to Gise should be: O $178500. O $149000. O $208000. O $245000.
The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix, the managing partner, receives a salary allowance of $10800O, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Alix $602000, Gise $1190000, and Bosco $1798000. If partnership net income is $735000, the amount allocated to Gise should be: O $178500. O $149000. O $208000. O $245000.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...
Related questions
Question
100%
Question-based on, "Net income".
I have tried it but no luck so far.
Thanks for any help.
Transcribed Image Text:The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix,
the managing partner, receives a salary allowance of $108000, (b) each partner receives 15%
interest on average capital investment, and (c) remaining net income or loss is divided equally. The
average capital investments for the year were: Alix $602000, Gise $1190000, and Bosco
$1798000. If partnership net income is $735000, the amount allocated to Gise should be:
O $178500.
O $149000.
$208000.
O $245000.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT