Rodgers and Winter had capital balances of $60,000 and $90,000, respectively, at
ID: 2331361 • Letter: R
Question
Rodgers and Winter had capital balances of $60,000 and $90,000, respectively, at the for salary allowances of S25, remaining net income divided equally. Net income for the current year was $110,000 of the current fiscal year. The artides of partnership r 000 and $30,000, respectively: an allowance of interest at 12% on the capital balances at the beginning of the year, and t the Division of net income section of the income statement for the current year. Net income $110,000 Rodgers Winter Total Division of net income: Interest allowance Net income b. Assuming that the net income had been $65,000 instead of $110,000, present the Division of net income section of the income statement for the Net income $65,000 Rodgers Winter Total Division of net income: My Tech (888) 736-2Explanation / Answer
a.
Calculations: Remaining income = 110,000 - 73,000 = 37,000. This amount is equally divided between Rodgers and Winter.
b.
Rodgers Winter Total Division of net income: Salary allownace 25,000 30,000 55,000 Interest allowance 7,200 10,800 18,000 Total 32,200 40,800 73,000 Remaining income 18,500 18,500 37,000 Net income 50,700 59,300 110,000