Dividing Partnership Net Income Steve Queen and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Queen of $89,040. Interest of 7% on each partner's capital balance on January 1. Any remaining net income divided to Queen and Stevens, 1:2. Queen and Stevens had $69,000 and $93,000, respectively, in their January 1 capital balances. Net income for the year was $159,000. How much net income should be distributed to Queen and Stevens?Queen: fill in the blank 1 of 2$Stevens: fill in the blank 2 of 2$
Dividing Partnership Net Income Steve Queen and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Queen of $89,040. Interest of 7% on each partner's capital balance on January 1. Any remaining net income divided to Queen and Stevens, 1:2. Queen and Stevens had $69,000 and $93,000, respectively, in their January 1 capital balances. Net income for the year was $159,000. How much net income should be distributed to Queen and Stevens?Queen: fill in the blank 1 of 2$Stevens: fill in the blank 2 of 2$
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dividing Partnership Net Income
Steve Queen and Chelsy Stevens formed a partnership, dividing income as follows:
- Annual salary allowance to Queen of $89,040.
- Interest of 7% on each partner's capital balance on January 1.
- Any remaining net income divided to Queen and Stevens, 1:2.
Queen and Stevens had $69,000 and $93,000, respectively, in their January 1 capital balances. Net income for the year was $159,000.
How much net income should be distributed to Queen and Stevens?
Queen: fill in the blank 1 of 2$
Stevens: fill in the blank 2 of 2$
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