Compute the net income allocated to each partner

Reference no: EM132953749

Question: Partner A, Partner B, and Partner Y formed a partnership and agreed to share profits in a 3:1:2 ratio after recognition of 5% interest on average capital balances and monthlysalary allowances of $5,000 to Partner B and $3,000 to Partner Y. Average capital balances were as follows:

Partner A 900,000
Partner B 720,000
Partner Y 540,000

Required: Compute the net income (loss) allocated to each partner assuming the partnership incurred a $54,000 net loss.

Reference no: EM132953749

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