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Emmett and Sierra formed a partnership dividing income as follows: 1. Annual salary allowance to Emmett of $42,800 2. Interest of 8% on each partner's capital balance on January 1 3. Any remaining net income divided equally. Emmett and Sierra had $23,000 and $148,300, respectively in their January 1 capital balances. Net income for the year was $212,900. How much net income should be distributed to Emmett? $

Emmett and Sierra formed a partnership dividing income as follows: 1. Annual salary allowance to Emmett of $42,800 2. Interest of 8% on each partner's capital balance on January 1 3. Any remaining net income divided equally. Emmett and Sierra had $23,000 and $148,300, respectively in their January 1 capital balances. Net income for the year was $212,900. How much net income should be distributed to Emmett? $

FINANCIAL ACCOUNTING
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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Emmett and Sierra formed a partnership dividing income as follows: 1. Annual salary allowance to Emmett of $42,800 2. Interest of 8% on each partner's capital balance on January 1 3. Any remaining net income divided equally. Emmett and Sierra had $23,000 and $148,300, respectively in their January 1 capital balances. Net income for the year was $212,900. How much net income should be distributed to Emmett?
Transcribed Image Text:Emmett and Sierra formed a partnership dividing income as follows: 1. Annual salary allowance to Emmett of $42,800 2. Interest of 8% on each partner's capital balance on January 1 3. Any remaining net income divided equally. Emmett and Sierra had $23,000 and $148,300, respectively in their January 1 capital balances. Net income for the year was $212,900. How much net income should be distributed to Emmett?
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