Answer:
Oriole Co
Division of net income to each partner:
Pitts Filbert Witten Total
Total income $33,480 $13,580 $11,940 $59,000
Explanation:
a) Data and Calculations:
Net income = $59,000
Salary allowances = $26,000
Remaining shareable income = $33,000
Allocation of net income to each partner:
Pitts Filbert Witten
Income sharing ratio 56 : 26 : 18
Salary Allowances $15,000 $5,000 $6,000
Shareable income 18,480 8,580 5,940
Total income $33,480 $13,580 $11,940
b) Calculation of shareable income:
Pitts = $33,000 * 56% = $18,480
Filbert = $33,000 * 26% = $8,580
Witten = $33,000 * 18% = $5,940
