100 B Wed 700 PM a v2cengagenowcom l Online teaching and lea

100% B), Wed 7:00 PM a v2.cengagenow.com l Online teaching and learning resource from Cengage Lear eBook Show Ma Calculator Print Itenm Dividing Partnership Net Income Required: Steve Prince and Chelsy Stevens formed a partnership, dividing income as follows: 1. Annual salary allowance to Stevens of $125,400. 2. Interest of 6% on each partner\'s capital balance on January 1, 3. Any remaining net income divided to Prince and Stevens, 1:2 Prince and Stevens had $77,600 and $97,560, respectively, in their January 1 capital balances. Net income for the year was $220,000. How much is distributed to Prince and Stevens? Note: Compute partnership share to two decimal places. Round final answers to the nearest whole dollar. Prince: 32,686|X Stevens: $ 187,314X Check My Work Set up a column for each partner and a total column. The amount of net income that should be distributed to each partner should include the partners salary allowance, the interest on the partner\'s capital balance, and any remaining income divided based on the partnership agreement. If the net income is less than the total of the salary and interest allowances, then the remaining net income to divide is a negative amount, as though it were a net loss. xt > Previous Ned Check My Work 1 more Check My Work uses remaining for Grad

Solution

Calculate distribution of income :

so total distribution

Prince = 32686

Stevens = 187314

	Prince	Stevens	Total
Net income			220000
Salary allowance		125400	(125400)
Interest for partners	4656	5853.60	(10509.60)
			84090.40
Distribution of profit	28030.13	56060.27	(84090.40)
Total	32686.13	187313.87