The partnership agreement of Thomas, Gise, and Bosco provides for the following income ratio: (a) Thomas, the managing partner, receives a salary allowance of $102000, (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: Thomas $601000, Gise $1195000, and Bosco $1796000. If partnership net income is $735000, the amount allocated to Gise should be: O $147850. O $245000. O $179250. O $210650.

The partnership agreement of Thomas, Gise, and Bosco provides for the following income ratio: (a) Thomas, the managing partner, receives a salary allowance of $102000, (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: Thomas $601000, Gise $1195000, and Bosco $1796000. If partnership net income is $735000, the amount allocated to Gise should be: O $147850. O $245000. O $179250. O $210650.

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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