Question

Dividing Partnership Net Income Required: Steve Conyers and Chelsy Stevens formed a partnership, dividing income as follows: 1. Annual salary allowance to Stevens of $124,830. 2. Interest of 6on each partner's capital balance on January 1. 3. Any remaining net income divided to Conyers and Stevens, 182 Conyers and Stevens had $48,000 and $99,000, respectively, in their January 1 capital balances. Net income for the year was $219,000. How much is distributed to Convers and Stevens Note: Compute partnership share. Conyers: Stevens:

Answer 1

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sowtion computation of Parther ship share conayers and Stevens. of Particulans steve Chelsy conyers Total Stevens Annual salary $1.24.830 $0 $1.94,830 $8.820 Interest @6% $9.880 $5,940 (48,000 X 607) (99,000x6').) $28,450 $56,900 $85,350 remaining income in the ratio 1:2 (2,19,000/-),24830 68.890 ) Tot dilal distributed $ 1,56.160 to Parther's $62.840 $219.000 conyers - $1,56,160 Stevens - $ 62,840