Steve and Heather decided to form a partnership on April 1. Steve invested $60,000 and Heather invested $40,000. Net income for the fiscal year ended March 31 was $110,000. Each partner is to receive 10% on their original investment. Steve and Heather are to receive a salary allowance of $35,000 and $45,000, respectively. The remainder is to be divided as follows: 70% to Steve and 30% to Heather. Determine the amount of net income that Steve and Heather would have received.

What will be an ideal response?


 SteveHeatherTotalNet income  $110,000    Salary allowances$35,000$45,00080,000Interest allowances6,0004,00010,000Remaining income (70% : 30%)14,000  6,000  20,000Total of each column$55,000$55,000$110,000

Business

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