Bannister invested $110,000 and Wilder invested $99,500 in a new partnership. They agreed to an annual interest allowance of 10% on the partners' beginning-year capital balance, with the balance of income or loss to be divided equally. Under this agreement, what are the income or loss shares of the partners if the annual partnership income is $202,000?
What will be an ideal response?
| ? | Bannister | Wilder | Total |
| Total net income……………………… | ? | ? | $202,000 |
| Allocated as interest | ? | ? | ? |
| Bannister (10% on $110,000)……… | 11,000 | ? | (11,000) |
| Wilder (10% on $99,500)………… | ? | 9,950 | (9,950) |
| Balance of income | ? | ? | 181,050 |
| Allocated equally……………………… | 90,525 | 90,525 | (181,050) |
| Shares of the partners………………… | $101,525 | $100,475 | $-0- |
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