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Mandarinka [93]
3 years ago
14

Farmer and Taylor formed a partnership with capital contributions of $200,000 and $250,000, respectively. Their partnership agre

ement calls for Farmer to receive a $70,000 per year salary. The remaining income or loss is to be divided equally. If the net income for the current year is $135,000, then Farmer and Taylor's respective shares are:
a. $67,500: $67,500.
b. $130,000; $5,000.
c. $106,140; S28.860
d. $90,000; $45,000.
e. $102,500. S32.500.
Business
1 answer:
attashe74 [19]3 years ago
3 0

Answer:

e. $102,500 . $32,500

Explanation:

shared income = Net income for the year - salary allowance

                         = $135,000 - $70,000

                         = $65000

Farmer gets = $65000/2 + $70000

                    = $32500 + $70000

                    = $102500

Taylor gets = $65000/2

                   = $32500

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