The partnership net income for the first year of operations, Ask an Expert

Management Studies

Guenther and Firmin, both of whom are CPAs, form a partnership, with Guenther investing $100,000 and Firmin, $80,000. They agree to share net income as follows:

1. Salary allowances of $80,000 to Guenther and $50,000 to Firmin.

2. Interest allowances at 15% of beginning capital account balances.

3. Any partnership earnings in excess of the amount required to cover the interest and salary allowances to be divided 60% to Guenther and 40% to Firmin.

The partnership net income for the first year of operations amounted to $247,000 before interest and salary allowances. Show how this $247,000 should be divided between the two partners. Use a three-column schedule.List on separate lines the amounts of interest, salaries, and the residual amount divided.

View complete question

Business Management, Management Studies

Category:- Business Management
Reference No.:- M998593

Have any Question?Write your Review or question?

Related Questions in Business Management

With respect to the different environments within an

With respect to the different environments within an organization (certain, risk, or uncertain), why is it best for an organization to support both systematic or mostly intuitive thinkers?

Suppose that a firm had a production function given by

Suppose that a firm had a production function given by: q=2L0.4K0.8. The rental rate for the firm is $20 and the wage is $15. Solve the optimization condition for K and then fill in the value that appears in front of L.

Making note of the differences and similarities between a

Making note of the differences and similarities between a non-profit vs a for-profit organization, i.e. the user experience, the style and content what would the differences and simliarities be?

According to the law of diminishing marginal utility the

According to the Law of Diminishing Marginal Utility, the consumer will receive less satisfaction when they consume additional units of goods and services. Explain 3 ways how the firm can influence the consumer purchasin ...

Assume the role of the manager of the qi department in a

Assume the role of the manager of the QI Department in a hospital. Recently, the Healthcare Facilities Accreditation Program (HFAP) conducted a survey on the hospital. The survey results have been made available. Instruc ...

Paraphrase this answer bellowsuccessful implementation of

Paraphrase this answer bellow. Successful implementation of the TPP could have been regarded as the most important trade agreement that could have benefited members and non-members. The deal could have led to the liberal ...

If health care employees are happy in their jobs do you all

If health care employees are happy in their jobs, do you all see incentives as a major issue in employees deciding to remain at a place of employment? Further, can incentives be in the form of monetary, or recognition of ...

The evolutionary process is one important perspective of

The evolutionary process is one important perspective of strategic management. What is evolutionary process?

Do you all see employee motivation as being a dynamic

Do you all see employee motivation as being a dynamic situation; meaning that the entire situation must be thoroughly examined and positive steps either progress, or retrospectively reexamined to ensure that the entire i ...

Articulate the theories of international trade and

Articulate the theories of international trade and investment. Give an example of one of the theories.

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Management Expert