Question
In: Accounting
Anderson, Martin, and Bryant have capital balances of $24,000, $36,000, and $60,000, respectively. The partners share...
Anderson, Martin, and Bryant have capital balances of $24,000, $36,000, and $60,000, respectively. The partners share profits and losses as follows:
a. The first $50,000 is divided based on the partners' capital balances.
b. The next $50,000 is based on service, shared equally by Anderson and Bryant. Martin does not receive a salary allowance.
c. The remainder is divided equally.
Compute each partner's share of the $121,000 net income for the year. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.)
Solutions
Expert Solution
| ANDERSON | MARTIN | BRAYANT | Total | |
| a) First $50000 (4:6:10) | $ 10,000 | $ 15,000 | $ 25,000 | $ 50,000 |
| (Based on capital ratio) | ||||
| b) Next $50000 (Equally by anderson and brayant) | $ 25,000 | $ - | $ 25,000 | $ 50,000 |
| c) Balance ($21000 Equally) | $ 7,000 | $ 7,000 | $ 7,000 | $ 21,000 |
| Total | $ 42,000 | $ 22,000 | $ 57,000 | $ 1,21,000 |
ekkarill92 answered 2 weeks agoRelated Solutions
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