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The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix, the managing partner, receives a salary allowance of $10800O, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Alix $602000, Gise $1190000, and Bosco $1798000. If partnership net income is $735000, the amount allocated to Gise should be: O $178500. O $149000. O $208000. O $245000.

The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix, the managing partner, receives a salary allowance of $10800O, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Alix $602000, Gise $1190000, and Bosco $1798000. If partnership net income is $735000, the amount allocated to Gise should be: O $178500. O $149000. O $208000. O $245000.

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 partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix, the managing partner, receives a salary allowance of $108000, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Alix $602000, Gise $1190000, and Bosco $1798000. If partnership net income is $735000, the amount allocated to Gise should be: O $178500. O $149000. $208000. O $245000.
Transcribed Image Text:The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix, the managing partner, receives a salary allowance of $108000, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Alix $602000, Gise $1190000, and Bosco $1798000. If partnership net income is $735000, the amount allocated to Gise should be: O $178500. O $149000. $208000. O $245000.
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