Stolton and Bright are partners in a business they started two years ago. The partnership agreement states that Stolton should receive a salary allowance of $15,000 and that Bright should receive a $20,000 salary allowance. Any remaining income or loss is to be shared equally. Determine each partner's share of the current year's net income of $52,000.

Share of Stolton is $23,500

Share of Bright is $28,500

Explanation:

The present net income amounts to $52,000, from which the Stolton (S) will receive $15,000 as the salary allowance whereas the Bright (B) will receive $20,000 as a salary allowance.

So, the balance amount is:

Balance amount = Present Net income - Salary allowance of Stolton - Salary allowance of Bright

= $52,000 - $15,000 - $20,000

= $17,000

This remaining balance is to be shared equally among the S and B. So, the amount will be $8,500 per partner.

The aggregate amount would be:

S = $15,000 + $8,500

= $23,500

B = $20,000 + $8,500

= $28,500