16. Xavier and Yolanda have original investments of $45,400 and $109,000, respectively, in a partnership. The...

16. Xavier and Yolanda have original investments of $45,400 and $109,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $25,500 and $31,800, respectively; and the remainder to be divided equally. How much of the net income of $106,300 is allocated to Xavier?

a. $25,500

b. $34,580

c. $52,368

d. $43,640

17.Use the information below to answer the question that follow.

The capital accounts of Harrison and Marti have balances of $160,000 and $110,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Harrison invested an additional $20,000. During the year, Harrison and Marti withdrew $96,000 and $78,000, respectively, and net income for the year was $264,000. The articles of partnership make no reference to the division of net income.

Based on this information, the statement of partners' equity would show what amount in the capital account for Marti on December 31?

a. $52,000

b. $216,000

c. $380,000

d. $164,000

Expert Solution

16.

	Xavier	Yolanda
Interest on investment	$45,400*20% = $9,080	$109,000*20% = $21,800
Salary allowance	$ 25,500	$ 31,800
Total interest and allowances	$ 34,580	$ 53,600
Balance of net income divided equally	($106,300-$34,580-$53,600)/2 = $9,060	($106,300-$34,580-$53,600)/2 = $9,060
Total net income distribution	$ 43,640	$ 62,660

Answer is D.$43,640

ekkarill92 answered 1 year ago

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