Xavier and Yolanda have original investments of $52,800 and $109,800, 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 $25,200 and $32,000, respectively; and the remainder to be divided equally. How much of the net income of $109,400 is allocated to Yolanda? a. $21,960 b. $63,800 c. $53,960 Od. $76,560 Xavier and Yolanda have original investments of $52,800 and $109,800, respectively, in a partnership. The articles of partnership include the followingprovisions regarding the division of net income: interest on original investment at 20%; salary allowances of $25,200 and $32,000, respectively; and theremainder to be divided equally. How much of the net income of $109,400 is allocated to Yolanda?Oa. $21,960b. $63,800c. $53,960d $76,560

A partnership is an agreement between two or more partners where partners agree to work together for…

Answered: Xavier and Yolanda have original…

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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Xavier and Yolanda have original investments of $52,800 and $109,800, 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 $25,200 and $32,000, respectively; and the remainder to be divided equally. How much of the net income of $109,400 is allocated to Yolanda? a. $21,960 b. $63,800 c. $53,960 Od. $76,560

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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