Steve Prince and Chelsy Dane formed a partnership, dividing income as follows: Annual salary allowance to Prince of $179,220. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Prince and Dane, 1:2. Prince and Dane had $87,000 and $93,000, respectively, in their January 1 capital balances. Net income for the year was $309,000. How much net income should be distributed to Prince and Dane?
Steve Prince and Chelsy Dane formed a partnership, dividing income as follows: Annual salary allowance to Prince of $179,220. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Prince and Dane, 1:2. Prince and Dane had $87,000 and $93,000, respectively, in their January 1 capital balances. Net income for the year was $309,000. How much net income should be distributed to Prince and Dane?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 2CE
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Steve Prince and Chelsy Dane formed a
- Annual salary allowance to Prince of $179,220.
- Interest of 6% on each partner's capital balance on January 1.
- Any remaining net income divided to Prince and Dane, 1:2.
Prince and Dane had $87,000 and $93,000, respectively, in their January 1 capital balances. Net income for the year was $309,000.
How much net income should be distributed to Prince and Dane?
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