Dividing Partnership Net Income Required: Steve Jack and Chelsy Poodle formed a partnership, dividing income as follows: 1. Annual salary allowance to Poodle of $115,050. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Poodle, 1:2. Jack and Poodle had $57,000 and $75,000, respectively, in their January 1 capital balances. income for the year was $195,000. How much is distributed to Jack and Poodle?
Dividing Partnership Net Income Required: Steve Jack and Chelsy Poodle formed a partnership, dividing income as follows: 1. Annual salary allowance to Poodle of $115,050. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Poodle, 1:2. Jack and Poodle had $57,000 and $75,000, respectively, in their January 1 capital balances. income for the year was $195,000. How much is distributed to Jack and Poodle?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Dividing Partnership Net Income
Required:
Steve Jack and Chelsy Poodle formed a partnership, dividing income as follows:
1. Annual salary allowance to Poodle of $115,050.
2. Interest of 6% on each partner's capital balance on January 1.
3. Any remaining net income divided to Jack and Poodle, 1:2.
Jack and Poodle had $57,000 and $75,000, respectively, in their January 1 capital balances. Net
income for the year was $195,000. How much is distributed to Jack and Poodle?
Note: Compute partnership share.
Jack: $
Poodle: $
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