la. Pike, Quinn, and Reed are forming a parthnership On March 31 of the current year, the capital accounts of the three existing partners and their shares of profits and losses are as follows: Capital Profit-and-Loss % Pike.. Quinn Reed... $ 50,000 20% 100,000 30% 150,000 50% Requirements A partnership reports net income of $70,000. The partnership agreement has defined an income sharing ratio, which provides for salaries of $15,000 to Pike and $10,000 to Quinn. Any remaining profit is allocated based on profit and loss ratio. What division of profits would you recommend to Pike, Quinn and Redd?
la. Pike, Quinn, and Reed are forming a parthnership On March 31 of the current year, the capital accounts of the three existing partners and their shares of profits and losses are as follows: Capital Profit-and-Loss % Pike.. Quinn Reed... $ 50,000 20% 100,000 30% 150,000 50% Requirements A partnership reports net income of $70,000. The partnership agreement has defined an income sharing ratio, which provides for salaries of $15,000 to Pike and $10,000 to Quinn. Any remaining profit is allocated based on profit and loss ratio. What division of profits would you recommend to Pike, Quinn and Redd?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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la. Pike, Quinn, and Reed are forming a parthnership
On March 31 of the current year, the capital accounts of the three existing partners and their
shares of profits and losses are as follows:
Requirements
A
sharing ratio, which provides for salaries of $15,000 to Pike and $10,000 to Quinn. Any remaining
profit is allocated based on
Transcribed Image Text:la. Pike, Quinn, and Reed are forming a parthnership
On March 31 of the current year, the capital accounts of the three existing partners and their
shares of profits and losses are as follows:
Capital Profit-and-Loss %
Pike. .
Quinn
Reed...
$ 50,000 20%
100,000 30%
150,000 50%
Requirements
A partnership reports net income of $70,000. The partnership agreement has defined an income
sharing ratio, which provides for salaries of $15,000 to Pike and $10,000 to Quinn. Any remaining
profit is allocated based on profit and loss ratio. What division of profits would you recommend
to Pike, Quinn and Redd?
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