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Ramona Stolton and Jerry Bright are partners in a business they started two years ago. The partnership agreement states that Stolton should receive a salary allowance of $30,000 and that Bright should receive a $40,000 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 $104,000. (Leave no cells blank be certain to enter “0” wherever required. Enter all amounts as positive numbers, even if performing subtraction. Omit the “$” sign in your response.) |
| Stolton | Bright | Total | |
| Net income | $ | ||
| Salary allowances | |||
| Stolton | $ | ||
| Bright | $ | ||
| Total salary allowances | |||
| Balance of income | |||
| Balance allocated equally | |||
| Stolton | |||
| Bright | |||
| Total allocated equally | |||
| Balance of income |
$ |
||
| Shares of the partners |
$ |
$ |