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The AB Partnership has the following plan for the distribution of partnership net income (loss) as shown in the image. Calculate the distribution of partnership net income (loss) for each independent situation below. For each situation, assume the average capital balance of A is $140,000 and of B is $240,000.  A: Partnership net income is $360,000 B: Partnership net income is $240,000 C: Partnership net loss is $40,000

The AB Partnership has the following plan for the distribution of partnership net income (loss) as shown in the image. Calculate the distribution of partnership net income (loss) for each independent situation below. For each situation, assume the average capital balance of A is $140,000 and of B is $240,000.  A: Partnership net income is $360,000 B: Partnership net income is $240,000 C: Partnership net loss is $40,000

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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The AB Partnership has the following plan for the distribution of partnership net income (loss) as shown in the image.

Calculate the distribution of partnership net income (loss) for each independent situation below.

For each situation, assume the average capital balance of A is $140,000 and of B is $240,000.

 A: Partnership net income is $360,000

B: Partnership net income is $240,000

C: Partnership net loss is $40,000

 

A 80,000 Salaries 100,000 Bonus 6% 12% Interest on average capital balance Remainder (if positive) 78 7% 60% 40% Remainder (if negative) 50% 50%
Transcribed Image Text:A 80,000 Salaries 100,000 Bonus 6% 12% Interest on average capital balance Remainder (if positive) 78 7% 60% 40% Remainder (if negative) 50% 50%
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