Christie and Jergens formed a partnership with capital contributions of $300,000 and $400,000, respectively. Their partnership agreement calls for Christie to receive a $60,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $135,000, then Christie and Jergens's respective shares are:
A. $35,000; $100,000.
B. $57,857; $77,143.
C. $92,500; $42,500.
D. $67,500; $67,500.
E. $90,000; $40,000.
Answer: C
You might also like to view...
Which of the following is a five-member body that has the authority from Congress to set standards for conducting audits?
a. FASB b. SEC c. PCAOB d. AICPA
On the income statement of a merchandising company, cost of goods is added to net sales to arrive at gross margin or gross profit
a. True b. False Indicate whether the statement is true or false
Martha has determined that along the share-development path, her business should perform at a 91% level of product awareness, 73% in product preference, 86% in intentions to purchase, and 76% in product availability
If the share potential index for Martha's business is 26%, at what level of purchase rate should her business perform? A) 90% B) 80% C) 70% D) 60% E) 50%
In 2013, the nonprofit sector employed what percentage of the total U.S. workforce?
A. 5% B. 10% C. 20% D. 30%