Question

Required: Steve Queen and Chelsy Bernard formed a partnership, dividing income as follows: Annual salary allowance to Bernard of $88,920. Interest of 5% on each partner's capital balance on January 1. Any remaining net income divided to Queen and Bernard, 1:2. Queen and Bernard had $96,000 and $93,000, respectively, in their January 1 capital balances. Net income for the year was $156,000. How much is distributed to Queen and Bernard

Answer 1

Queen = $126,640

Bernard = $42,410

Step-by-step explanation:

2,530 answers

Remaining profit = $156,000 - $88,920 - ($96,00,000 + $93,000) X 7%

Remaining profit = $53,850

Queen: $88,920 + ($96,000 X 7%) + ($53,850 X 1/3)

Queen= $126,640

Bernard: ($93,000 X 7%) + ($53,850 X 2/3)

Bernard = $42,410