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zvonat [6]
3 years ago
10

Partner A has a capital balance of $20,000 and devotes full time to the partnership. Partner B has a capital balance of $30,000

and devotes half time to the partnership. If no other information is available regarding distributions, in what ratio is net income to be divided?
1. 3:5
2. 1:1
3. 2:3
4. 1:2
Business
1 answer:
gtnhenbr [62]3 years ago
4 0

Answer:

The ratio of net income distribution

= $20,000: $30,000

= 2:3

Explanation:

The ratio of income distribution is the ratio of capital contributed by each partner. A contributes $20,000 while B contributes $30,000. The ratio of net income distribution is 2:3.

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