How much net income should be distributed to Emmett

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Question - Emmett and Sierra formed a partnership dividing income as follows;

1. Annual salary allowance to Emmett of $39,900.

2. Interest of 8% on each partner's capital balance on January 1.

3. Any remaining net income divided equally.

Emmett and Sierra had $38,800 and $134,900, respectively in their January 1 capital balances. Net income for the year was $230,600. How much net income should be distributed to Emmett?

Reference no: EM133072774

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