Xavier and Yolanda have original investments of $50,300 and $95,200, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $28,700 and $30,000, respectively; and the remainder to be divided equally. How much of the net income of $106,800 is allocated to Xavier?

Xavier and Yolanda have original investments of $50,300 and $95,200, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $28,700 and $30,000, respectively; and the remainder to be divided equally. How much of the net income of $106,800 is allocated to Xavier?

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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