Ahmed and Sayed are partners in A&S Partnership. Ahmed invests $250,000 and Sayed invests $450,000. They agree to grant salary allowance of $40,000 to Ahmed and $60,000 to Sayed; an 8% interest allowance on beginning capital balances and to share any remaining income or loss equally. A&S partnership reports net income of $190,000 for this year. Required: Allocate the net income between the partners.

Ahmed and Sayed are partners in A&S Partnership. Ahmed invests $250,000 and Sayed invests $450,000. They agree to grant salary allowance of $40,000 to Ahmed and $60,000 to Sayed; an 8% interest allowance on beginning capital balances and to share any remaining income or loss equally. A&S partnership reports net income of $190,000 for this year. Required: Allocate the net income between the partners.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 12DQ

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