Solution-Prepare a division of net income to each of the

Prepare a division of net income to each of the partners

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Reference no: EM133178273

Question - Brewer and Tony have a partnership agreement which includes the following provisions regarding sharing net income or net loss:

a. A salary allowance of $30,000 to Brewer and $15,000 to Tony.

b. An interest allowance of 10% on capital balances at the beginning of the year.

c. The remainder to be divided 60% to Brewer and 40% to Tony.

The capital balances on January 1, 2001, for Brewer and Tony were $80,000 and $100,000, respectively. During 2001, the Brewer and Tony Partnership had sales of $330,000, cost of goods sold of $190,000, and operating expenses of $60,000.

Required - Prepare a Division of Net Income to each of the partners.

Reference no: EM133178273

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Prepare a division of net income to each of the partners

Reference no: EM133178273

Reference no: EM133178273

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