Dividing Partnership Net Income Steve King and Chelsy Dane formed a partnership, dividing income as follows: 1. Annual salary allowance to Dane of $141,600. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to King and Dane, 1:2. King and Dane had $102,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $240,000. Required: How much net income should be distributed to King and Dane? King: $ Dane: $

Dividing Partnership Net Income Steve King and Chelsy Dane formed a partnership, dividing income as follows: 1. Annual salary allowance to Dane of $141,600. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to King and Dane, 1:2. King and Dane had $102,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $240,000. Required: How much net income should be distributed to King and Dane? King: $ Dane: $

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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A-7

Dividing Partnership Net Income
Steve King and Chelsy Dane formed a partnership, dividing income as follows:
1. Annual salary allowance to Dane of $141,600.
2. Interest of 6% on each partner's capital balance on January 1.
3. Any remaining net income divided to King and Dane, 1:2.
King and Dane had $102,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $240,000.
Required:
How much net income should be distributed to King and Dane?
King: $
Dane: $
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