Ask Question
BusinessBusiness
4 March, 20:28

The APB partnership agreement specifies that partnership net income be allocated as follows:

Partner A Partner P Partner B

Salary allowance 30000 10000 40000

Interest on average

capital balance 10% 10% 10%

Remainder 40% 40% 20%

Average capital balances for the current year were $50,000 for A, $30,000 for P, and $20,000 for B.

19. Refer to the information given. Assuming a current year net income of $50,000, what amount should be allocated to each partner?

Partner A Partner P Partner B

A) 20000 20000 10000

B) 16000 16000 8000

C) 19000 (3000) 34000

D) 17000 0 33000

A. Option A

B. Option B

C. Option C

D. Option D

+3
Answers (1)
  1. 4 March, 20:35
    0
    C) 19000 (3000) 34000

    Explanation:

    income: 50,000

    salaries (80,000) (sum of partner salaries)

    interest (10,000) (total capital 100,000 x 10% interest)

    net loss (40,000)

    Partner A

    50,000 + 30,000 salary + 5,000 interest - 16,000 loss share (40%) = 69,000

    It woulld be allocate: 69,000 - 50,000 = 19,000

    Partner B

    30,000 + 10,000 salary + 3,000 interest - 16,000 loss share (40%) = 27,000

    27,000 - 30,000 = - 3,000

    Partner C

    20,000 + 40,000 salary + 2,000 interest - 8,000 loss share (20%) = 54,000

    54,000 - 20,000 = 34,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The APB partnership agreement specifies that partnership net income be allocated as follows: Partner A Partner P Partner B Salary allowance ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What is the total taxable interest income shown on line 8a of form 1040? a. $70 b. $95 c. $150 d. $245?
Answers (1)
Journalize the following inventory merchandise transactions, assuming that the Conquest company uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec.
Answers (1)
All new employees at Madison Lane Manufacturing are specifically trained to use the most efficient production methods.
Answers (1)
Tactical decisions define Group of answer choices the day-to-day activities of the organization. the goals and plans of the organization. the domain of operations managers, who are close to the customer.
Answers (1)
Knowledge Check 01 On March 15, Viking Office Supply agrees to accept $1,200 in cash along with a $2,800, 60-day, 15 percent note from one of its customers to settle his $4,000 past-due account.
Answers (1)
New Questions in Business
In which year were tobacco commercials banned from network television in the united states?
No Answers
Maggie's manager notices that she exhibits an external locus of control when she speaks about her work. Her manager should Group of answer choices a. direct Maggie toward a job with more autonomy. b.
Answers (1)
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Rent seeking is an attempt to A. use the government for individual benefit at the expense of others. Regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated. B.
Answers (1)
An Insurance company is a business in which it pays to the company if there is a loss, damage, treatments or injury for the payment of premium amount. It calculates the risks that has occurred and pays to compensate the premium amount.
Answers (1)
Home » Business » The APB partnership agreement specifies that partnership net income be allocated as follows: Partner A Partner P Partner B Salary allowance 30000 10000 40000 Interest on average capital balance 10% 10% 10% Remainder 40% 40% 20% Average capital
Sign Up Forgot Password?