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Distribution of Income or loss to partners.
Jane invested $100,000 and Paul invested $90,000 in a new partnership. They agreed to a $40,000 annual salary allowance to Jane and a $35,000 salary allowance to Paul. They agreed to a 10% interest on the partners' initial capital investments, with the balance to be divided 3/5 to Jane and 2/5 to Paul. Under this agreement, what are the income or loss shares of the annual partners if the partnership income is $87,000? Jane's Share $ Paul's Share $____________
Financial Statement Analysis and Preparation
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