Answer:
Han Lee and Monica Andrews Partnership
The net income that should be distributed to:
Lee = $50,400
Andrews = $13,600
Explanation:
a) Data and Calculations:
Han Lee Monica Andrews Total
Capital accounts, Jan. 1 $80,000 $150,000 $230,000
Annual salary allowance 32,000 32,000
Interest on capital 3,200 6,000 9,200
Total allowances $41,200
Profit sharing 15,200 7,600 22,800
Net income $64,000
Total distribution $50,400 $13,600 $(64,000)
