Net income for AB partnership for 2021 was $125,000. A and B have agreed to distribute partnership net income according to the following plan as shown in the image. Additional Information for 2021 follows: A began the year with a capital balance of $75,000 B began the year with a capital balance of $100,000 On March 1, A invested an additional $25,000 into the partnership On October 1, B invested an additional $20,000 into the partnership Throughout 2021, each partner withdrew $200 per week in anticipation of partnership net income. The partners agreed that these withdrawals are not to be included in the computation of average capital balances for purposes of income distributions. A. Allocate the income
Net income for AB
Additional Information for 2021 follows:
A began the year with a capital balance of $75,000
B began the year with a capital balance of $100,000
On March 1, A invested an additional $25,000 into the partnership
On October 1, B invested an additional $20,000 into the partnership
Throughout 2021, each partner withdrew $200 per week in anticipation of partnership net income.
The partners agreed that these withdrawals are not to be included in the computation of average capital balances for purposes of income distributions.
A. Allocate the income to partners A and B
B. Compute for the ending capital balances of the partners.
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