Question-based on partnership I have tried it but incorrect, the first 2 answers are wrong. Thanks for the help. The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix,the managing partner, receives a salary allowance of $108900, (b) each partner receives 15% intereston average capital investment, and (c) remaining net income or loss is divided equally. The averagecapital investments for the year were: Alix $607000, Gise $1100000, and Bosco $1810000. Ifpartnership net income is $549000, the amount allocated to Alix should be$91050.$199950.$175850.O $170800.

Answered: The partnership agreement of Alix,…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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...

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Question-based on partnership

I have tried it but incorrect, the first 2 answers are wrong.

Thanks for the help.

The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix,
the managing partner, receives a salary allowance of $108900, (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 $607000, Gise $1100000, and Bosco $1810000. If
partnership net income is $549000, the amount allocated to Alix should be
$91050.
$199950.
$175850.
O $170800.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Expert Solution

Step 1

Given that:

Salary Allowance to Alix = $108900

Interest on Capital = 15%

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