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Steve Jack and Chelsy Dane formed a partnership, dividing income as follows: 1. Annual salary allowance to Dane of $147,060. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Dane, 1:2. Jack and Dane had $57,000 and $111,000, respectively, in their January 1 capital balances. Net income for the year was $258,000. Required: How much net income should be distributed to Jack and Dane? Jack: S Dane: $

Steve Jack and Chelsy Dane formed a partnership, dividing income as follows: 1. Annual salary allowance to Dane of $147,060. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Dane, 1:2. Jack and Dane had $57,000 and $111,000, respectively, in their January 1 capital balances. Net income for the year was $258,000. Required: How much net income should be distributed to Jack and Dane? Jack: S Dane: $

FINANCIAL ACCOUNTING
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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Dividing Partnership Net Income Steve Jack and Chelsy Dane formed a partnership, dividing income as follows: 1. Annual salary allowance to Dane of $147,060. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Dane, 1:2. Jack and Dane had $57,000 and $111,000, respectively, in their January 1 capital balances. Net income for the year was $258,000. Required: How much net income should be distributed to Jack and Dane? Jack: $ Dane: $
Transcribed Image Text:Dividing Partnership Net Income Steve Jack and Chelsy Dane formed a partnership, dividing income as follows: 1. Annual salary allowance to Dane of $147,060. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Dane, 1:2. Jack and Dane had $57,000 and $111,000, respectively, in their January 1 capital balances. Net income for the year was $258,000. Required: How much net income should be distributed to Jack and Dane? Jack: $ Dane: $
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