Emerson and Dakota formed a partnership dividing income as follows:Annual salary allowance to Emerson of $34,000Interest of 10% on each partner's capital balance on January 1Any remaining net income divided equally.Emerson and Dakota had $30,000 and $146,800, respectively, in their January 1 capital balances. Net income for the year was $201,600.How much net income should be distributed to Dakota?$fill in the blank 1

Introduction:- A partnership is an agreement between two parties, known as business partners, to…

Answered: Emerson and Dakota formed a partnership…

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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Emerson and Dakota formed a partnership dividing income as follows:

Annual salary allowance to Emerson of $34,000
Interest of 10% on each partner's capital balance on January 1
Any remaining net income divided equally.

Emerson and Dakota had $30,000 and $146,800, respectively, in their January 1 capital balances. Net income for the year was $201,600.

How much net income should be distributed to Dakota?
$fill in the blank 1

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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