The Partnership agreement of Jones, King and Lane provides for the annual allocation of the business's profit or loss in the following sequence: -Jones, the managing partner, received a bonus equal to 20 percent of the business's profit, -Each Partner receives 10 percent interest on average capital investment -Any residual profit or loss divided equally   The average investments for 2018 were as follows: Jones 135,000 King 270,000 Lane 405,000 How much of the $60,000 partnership profit for 2018 should be assigned to each partner.   Jones____________ King___________ Lane__________________

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The Partnership agreement of Jones, King and Lane provides for the annual allocation of the business's profit or loss in the following sequence:

-Jones, the managing partner, received a bonus equal to 20 percent of the business's profit,

-Each Partner receives 10 percent interest on average capital investment

-Any residual profit or loss divided equally

 

The average investments for 2018 were as follows:

Jones 135,000

King 270,000

Lane 405,000

How much of the $60,000 partnership profit for 2018 should be assigned to each partner.

 

Jones____________

King___________

Lane__________________

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