Dividing Partnership Net IncomeSteve Queen and Chelsy Bernard formed a partnership, dividing income as follows:Annual salary allowance to Queen of $112, 560. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Queen and Bernard, 1:2. Queen and Bernard had $51,000 and $105,000, respectively, in their January 1 capital balances. Net income for the year was $201,000. How much net income should be distributed to Queen and Bernard?
Dividing Partnership Net IncomeSteve Queen and Chelsy Bernard formed a partnership, dividing income as follows:Annual salary allowance to Queen of $112, 560. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Queen and Bernard, 1:2. Queen and Bernard had $51,000 and $105,000, respectively, in their January 1 capital balances. Net income for the year was $201,000. How much net income should be distributed to Queen and Bernard?
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 59P
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![Dividing Partnership Net IncomeSteve Queen and Chelsy Bernard formed a partnership, dividing income as
follows:Annual salary allowance to Queen of $112, 560. Interest of 6% on each partner's capital balance on January 1.
Any remaining net income divided to Queen and Bernard, 1:2. Queen and Bernard had $51,000 and $105,000,
respectively, in their January 1 capital balances. Net income for the year was $201,000. How much net income should
be distributed to Queen and Bernard?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01d401bb-9fb7-4158-bf54-ecee7559a83e%2Fef4cf303-ab7a-49ba-91be-aaf3934c8a45%2Fqahceiq_processed.png&w=3840&q=75)
Transcribed Image Text:Dividing Partnership Net IncomeSteve Queen and Chelsy Bernard formed a partnership, dividing income as
follows:Annual salary allowance to Queen of $112, 560. Interest of 6% on each partner's capital balance on January 1.
Any remaining net income divided to Queen and Bernard, 1:2. Queen and Bernard had $51,000 and $105,000,
respectively, in their January 1 capital balances. Net income for the year was $201,000. How much net income should
be distributed to Queen and Bernard?
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