Partnership profit for 2013 should be assigned to partners

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Reference no: EM13169513

The partnership agreement of Jones, King, and Lane provides for the annual allocation of thebusiness's profit or loss in the following sequence:

Jones, the managing partner, receives a bonus equal to 20 percent of the business's profit.
Each partner receives 15 percent interest on average capital investment.
Any residual profit or loss is divided equally.

The average capital investments for 2013 were as follows:

Jones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000

King . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000

Lane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000

How much of the $90,000 partnership profit for 2013 should be assigned to each partner?

Reference no: EM13169513

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