Provision Moore Probst Tanski Interest on weighted-average capital after consideration of draws ... Annual salary Bonus as a percentage of income after the bonus Profit and loss percentage Capital balance at the beginning of the current year Drawings during current year:. March 31.... June 30 ... September 30 .... 10% 10% 10% $ 20,000 $75,000 $65,000 10% 10% .... 20% 40% 40% $250,000 $60,000 $40,000 .... ... $ 25,000 $ $ $40,000 $20,000 $20,000 $20,000 $20,000 $
Provision Moore Probst Tanski Interest on weighted-average capital after consideration of draws ... Annual salary Bonus as a percentage of income after the bonus Profit and loss percentage Capital balance at the beginning of the current year Drawings during current year:. March 31.... June 30 ... September 30 .... 10% 10% 10% $ 20,000 $75,000 $65,000 10% 10% .... 20% 40% 40% $250,000 $60,000 $40,000 .... ... $ 25,000 $ $ $40,000 $20,000 $20,000 $20,000 $20,000 $
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.3.1MBA
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Moore, Probst, and Tanski formed a partnership whose
If the weighted-average capital is negative, interest at 10% will be charged against the partner’s profit allocation. All provisions of the profit and loss agreement should be satisfied and any resulting deficiency should be allocated based on the profit and loss percentages. Assuming current-year income of $168,000, determine how the income should be allocated to the partners.
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