How much of the partnership profit should be assigned

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The Partnership agreement of jones, king, and Lane provides the annual allocation of the business's profit and loss in the following sequence:

Jones, the managing partner, receives a bonus equal to 15% of the business's profit. Each owner earns 14% interest on average capital investment Any residual profit or loss is divided equally

The average capital investment for 2018 were as follows:

Jones $100,000
King $200,000
Lane $300,000

Problem 1: How much of the $48,000 partnership profit for 2018 should be assigned to each partner?

Reference no: EM132648388

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