The Sunland Partnership reported profit of $61,300 for the year ended February 28, 2021. Salary allowances...

The Sunland Partnership reported profit of $61,300 for the year ended February 28, 2021. Salary allowances are $47,000 for H. Mills and $26,600 for S. Stone. Interest allowances of 6% are calculated on each partner's opening capital account balance. Capital account balances at March 1, 2020, were as follows: H. Mills $75,200 (Cr.) and S. Stone $48,700 (Cr.). Any remainder is shared equally.

Calculate the division of profit to each partner.

		H. Mills		S. Stone
Profit allocated to partners		$enter a dollar amount		$enter a dollar amount

Solutions

Expert Solution

	H.Mills	S.Stone	Total
Profit			$ 61,300
Salary Allowances	$ 47,000	$ 26,600	$ 73,600
Interest allowances	$ 4,512	$ 2,922	$ 7,434
Total Salary and interest allocation	$ 51,512	$ 29,522	$ 81,034
Balance of Profit			$ -19,734
Balance allocated equally	$ -9,867	$ -9,867	$ -19,734
Balance of Profit			$ -
Shares of Partners	$ 41,645	$ 19,655	$ 61,300

ekkarill92 answered 1 year ago

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