merson and Dakota formed a partnership dividing income as follows: Annual salary allowance to Emerson of $41,200 Interest of 10% on each partner's capital balance on January 1 Any remaining net income divided equally. Emerson and Dakota had $26,800 and $133,200, respectively, in their January 1 capital balances. Net income for the year was $206,400. How much net income should be distributed to Dakota?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Emerson and Dakota formed a partnership dividing income as follows:

  1. Annual salary allowance to Emerson of $41,200
  2. Interest of 10% on each partner's capital balance on January 1
  3. Any remaining net income divided equally.

Emerson and Dakota had $26,800 and $133,200, respectively, in their January 1 capital balances. Net income for the year was $206,400.

How much net income should be distributed to Dakota?

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