Dividing Partnership Net Income Required: Steve Conyers and Chelsy Dane formed a partnership, dividing income as follows: Annual salary allowance to Dane of $172,260. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Conyers and Dane, 1:2. Conyers and Dane had $87,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $297,000. How much is distributed to Conyers and Dane? Note: Compute partnership share. Conyers: $ Dane: $
Dividing Partnership Net Income Required: Steve Conyers and Chelsy Dane formed a partnership, dividing income as follows: Annual salary allowance to Dane of $172,260. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Conyers and Dane, 1:2. Conyers and Dane had $87,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $297,000. How much is distributed to Conyers and Dane? Note: Compute partnership share. Conyers: $ Dane: $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dividing
Required:
Steve Conyers and Chelsy Dane formed a partnership, dividing income as follows:
- Annual salary allowance to Dane of $172,260.
- Interest of 6% on each partner's capital balance on January 1.
- Any remaining net income divided to Conyers and Dane, 1:2.
Conyers and Dane had $87,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $297,000. How much is distributed to Conyers and Dane?
Note: Compute partnership share.
Conyers: $
Dane: $
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