Dividing Partnership Net Income Required: Steve Queen and Chelsy Bernard formed
ID: 2397262 • Letter: D
Question
Dividing Partnership Net Income Required: Steve Queen and Chelsy Bernard formed a partnership, dividing income as follows: Annual salary allowance to Queen of $153,900. Interest of 5% on each partner's capital balance on January 1. Any remaining net income divided to Queen and Bernard, 1:2. Queen and Bernard had $99,680 and $112,600, respectively, in their January 1 capital balances. Net income for the year was $270,000. How much is distributed to Queen and Bernard? Note: Compute partnership share to two decimal places. Round final answers to the nearest whole dollar.
Queen: $______
Bernard: $_______
I keep getting the wrong answer. Can someone please help me understand how to get the correct answers? Thank you!
Explanation / Answer
Statement showing Allocation of Income among partners Queen Bernard Total Net Income earned during the year 270000 Salary allowance 153900 -153900 Remaining profits 116100 Interest on capiptal @ 5% 4984 5630 -10614 Remaining profits 105486 Share of remaining profits in 1:2 35162 70324 -105486 Share of Income 194046 75954 270000