Reference no: EM133069916
Question - Tanner and Teresa share income and losses in a 2:1 ratio (2/3 to Tanner and 1/3 to Teresa) after allowing for salaries of $48,000 to Tanner and $60,600 to Teresa. Net income of the partnership is $135,300. How should income be divided for Tanner and Teresa?
a. Tanner, $65,800; Teresa, $69,500
b. Tanner, $60,800, Teresa, $74,500
c. Tanner, $74,500; Teresa, $60,800
d. Tanner, $61,800; Teresa, $73,500