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3 years ago

The APB partnership agreement specifies that partnership net income be allocated as follows:

Business

1 answer:

katovenus [111]3 years ago

8 0

Answer:

C) 19000 (3000) 34000

Explanation:

income: 50,000

salaries (80,000) (sum of partner salaries)

interest (10,000) (total capital 100,000 x 10% interest )

net loss (40,000)

Partner A

50,000 + 30,000 salary + 5,000 interest - 16,000 loss share(40%) = 69,000

It woulld be allocate: 69,000 - 50,000 = 19,000

Partner B

30,000 + 10,000 salary + 3,000 interest - 16,000 loss share(40%) = 27,000

27,000 - 30,000 = -3,000

Partner C

20,000 + 40,000 salary + 2,000 interest - 8,000 loss share(20%) = 54,000

54,000 - 20,000 = 34,000

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