Question 8 Save Answer Ahmed and Sayed are partners in A&S Partnership. Ahmed invests $250,000 and Sayed invests $450,000, They agree to grant salary allowance of $40,000 to Ahmed and $60,000 to Sayed; an 8% interest allowance on beginning capital balances and to share any remaining income or loss equally. A&S partnership reports net income of $190,000 for this year. Required: Allocate the net income between the partners. PLEASE SHOW THE CALCULATION FOR EACH PARTNER IN A SEPARATE LINE For the toolbar, press ALT+F10 (PC) or ALT+FN+F10o (Mac).

Question 8 Save Answer Ahmed and Sayed are partners in A&S Partnership. Ahmed invests $250,000 and Sayed invests $450,000, They agree to grant salary allowance of $40,000 to Ahmed and $60,000 to Sayed; an 8% interest allowance on beginning capital balances and to share any remaining income or loss equally. A&S partnership reports net income of $190,000 for this year. Required: Allocate the net income between the partners. PLEASE SHOW THE CALCULATION FOR EACH PARTNER IN A SEPARATE LINE For the toolbar, press ALT+F10 (PC) or ALT+FN+F10o (Mac).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ending Partner balances Burns and Allan have formed a partnership and invested $20.000 and $40,000, respectively. They have agreed to share profits as follows: 1) Burns is to receive a "salary" of $20.000 and Allan is to receive a "salary" of $30,000. 2) $30.000 is to be allocated according to their original capital contributions to the partnership. 3) The remainder is to be allocated 2:3 respectively Assuming that the business had a loss of $15000, allocate the loss to Burns and Allan.