6) Oliva Tsang and David Breck began a partnership by investing $5,000 and $45,000 respectively. For the year-ended December 31, 2009, the partnership earned $100,000. The partners agree to share income by allowing a $65,000 per year salary allowance to Breck, a $15,000 per year salary allowance to Tsang, 5% interest on beginning capital balances and the remainder equally. a) Prepare calculations that show how the income should be allocated to the partners under the following plans for sharing net incomes and losses.
6) Oliva Tsang and David Breck began a partnership by investing $5,000 and $45,000 respectively. For the year-ended December 31, 2009, the partnership earned $100,000. The partners agree to share income by allowing a $65,000 per year salary allowance to Breck, a $15,000 per year salary allowance to Tsang, 5% interest on beginning capital balances and the remainder equally. a) Prepare calculations that show how the income should be allocated to the partners under the following plans for sharing net incomes and losses.
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 3SEB
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![6) Oliva Tsang and David Breck began a partnership by investing $5,000 and $45,000 respectively.
For the year-ended December 31, 2009, the partnership earned $100,000.
The partners agree to share income by allowing a $65,000 per year salary allowance to Breck, a $15,000 per
year salary allowance to Tsang, 5% interest on beginning capital balances and the remainder equally.
a) Prepare calculations that show how the income should be allocated to the partners under the following
plans for sharing net incomes and losses.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0faf44c1-f283-4002-979f-82dd700dbcb3%2Fed841065-598b-480a-a8c5-0d45080292e1%2Fvaam76o_processed.png&w=3840&q=75)
Transcribed Image Text:6) Oliva Tsang and David Breck began a partnership by investing $5,000 and $45,000 respectively.
For the year-ended December 31, 2009, the partnership earned $100,000.
The partners agree to share income by allowing a $65,000 per year salary allowance to Breck, a $15,000 per
year salary allowance to Tsang, 5% interest on beginning capital balances and the remainder equally.
a) Prepare calculations that show how the income should be allocated to the partners under the following
plans for sharing net incomes and losses.
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