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, receives a bonus equal to 25 percent of the business's profit. Each partner receives 20 percent interest on average capital investment. • Any residual profit or loss is divided equally. The average capital investments for 2018 were as follows: Jones King $ 185,000 370,000 S55,000 Lane How much of the $82.000 partnership profit for 2018 should be assigned to each partner? Income Assignment Jones King Lane

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, receives a bonus equal to 25 percent of the business's profit. Each partner receives 20 percent interest on average capital investment. • Any residual profit or loss is divided equally. The average capital investments for 2018 were as follows: Jones King $ 185,000 370,000 S55,000 Lane How much of the $82.000 partnership profit for 2018 should be assigned to each partner? Income Assignment Jones King Lane

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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