The srt partnership agreement specifies that partnership net income be allocated as follows:
...
The srt partnership agreement specifies that partnership net income be allocated as follows:
partner s partner r partner t
salary allowance $20,000 $25,000 $15,000
interest on average capital balance 10% 10% 10%
remainder 30% 30% 40%
average capital balances for the current year were $60,000 for s, $50,000 for r, and $40,000 for t.
refer to the information given. assuming a current year net income of $45,000, what amount should be allocated to each partner?
partner s partner r partner t
a. $17,000 $21,000 $7,000
b. ($9,000) ($9,000) ($12,000)
c. $13,500 $13,500 $18,000
d. $22,500 $22,500 $0
Answers: 1
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