Htrae, Yks, and Sduolc formed a partnership at the beginning of the current year by investing $100,000, $150,000, and $250,000, respectively. The partners agreed to share profits and losses as follows: Salary allowances of $4,000 per month to Htrae and $2,000 per month to Yks; interest allowances of 12% of the initial capital investments for all three partners; and the remaining balance is to be shared in a 2:3:4 ratio. During the year, Htrae withdrew $20,000 cash, Yks withdrew $17,000 cash, and Sduolc withdrew $11,000 cash. The business earned a profit of $51,000 during the current year. REQUIRED: 1. How much net income is allocated to each of the two partners for the year? What is the ending capital balance of each of the two partners at the end of the year?
Htrae, Yks, and Sduolc formed a partnership at the beginning of the current year by investing $100,000, $150,000, and $250,000, respectively. The partners agreed to share profits and losses as follows: Salary allowances of $4,000 per month to Htrae and $2,000 per month to Yks; interest allowances of 12% of the initial capital investments for all three partners; and the remaining balance is to be shared in a 2:3:4 ratio. During the year, Htrae withdrew $20,000 cash, Yks withdrew $17,000 cash, and Sduolc withdrew $11,000 cash. The business earned a profit of $51,000 during the current year. REQUIRED: 1. How much net income is allocated to each of the two partners for the year? What is the ending capital balance of each of the two partners at the end of the year?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Income Loss Own
Htrae, Yks, and Sduolc formed a partnership at the beginning of the current year by investing $100,000, $150,000, and $250,000, respectively. The partners agreed to share
REQUIRED:
1. How much net income is allocated to each of the two partners for the year?
- What is the ending capital balance of each of the two partners at the end of the year?
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