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The profit and loss sharing agreement for the Sealy, Teske, and Ubank partnership provides that each partner receive a bonus of 5% on the original amount of partnership net income if net income is above $25,000. Sealy and Teske receive a salary allowance of $7,500 and $10,500, respectively. Ubank has an average capital balance of $260,000, and receives a 10% interest allocation on the amount by which his average capital account balance exceeds $200,000. Residual profits and losses are allocated to Sealy, Teske, and Ubank in their respective ratios of 7:5:8.
Problem 1: Prepare an schedule to allocate $88,000 of partnership net income to the partners.
Abraham Lincoln is often referred to as being the "Great Emancipator." As a consequence, African Americans honored him and held him in very high regard.
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