Dividing Partnership Net Income Steve King and Chelsy Boxer formed a partnership, dividing income as follows: 1. Annual salary allowance to Boxer of $130,500. 2. Interest of 7% on each partner's capital balance on January 1. 3. Any remaining net income divided to King and Boxer, 1:2. King and Boxer had $84,000 and $75,000, respectively, in their January 1 capital balances. Net income for the year was $225,000. Required: How much net income should be distributed to King and Boxer? King: $ Boxer:

Dividing Partnership Net Income Steve King and Chelsy Boxer formed a partnership, dividing income as follows: 1. Annual salary allowance to Boxer of $130,500. 2. Interest of 7% on each partner's capital balance on January 1. 3. Any remaining net income divided to King and Boxer, 1:2. King and Boxer had $84,000 and $75,000, respectively, in their January 1 capital balances. Net income for the year was $225,000. Required: How much net income should be distributed to King and Boxer? King: $ Boxer:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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