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Sharp and Townson had capital balances of of 60,000 and 90,000 respectively at the beginning of the current fiscal year. The articles of partnership provide for salary allowances of $25,000 and $30,000 respectively, an allowance of interest at 12% on the capital balances at the beginning of the year, with the remaining net income divided equally. Net income for the current year was $50,000. Determine the amount of income allocated to each partner.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9403391

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