Nabb & Fry Co. reports net income of $29,000. Interest allowances are Nabb $6,000 and Fry $5,600, salary allowances are Nabb $14,100 and Fry $10,900, and the remainder is shared equally. Show the distribution of income. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).) Nabb Fry Total Salary Allowance Interest Allowance Remaining Excess/deficiancy total division of net income
Nabb & Fry Co. reports net income of $29,000. Interest allowances are Nabb $6,000 and Fry $5,600, salary allowances are Nabb $14,100 and Fry $10,900, and the remainder is shared equally. Show the distribution of income. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).)
Nabb | Fry | Total | |
Salary Allowance | |||
Interest Allowance | |||
Remaining Excess/deficiancy | |||
total division of net income |
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>Partnership Income (Loss) is allocated based on the partnership agreement. |
>The Net Income or Loss is usually allocated to partners' capital account in the form of: |
--Salary allowance |
--Interest allowance |
--Remaining net income or loss. |
>The allocation can be based on: |
--Profit sharing ratios, |
--Capital balances, |
--Equal sharing, etc. |
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