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Problem - David and Warren had capital balances of $140,000 and $160,000 respectively at the beginning of the current fiscal year. The articles of partnership provide for salary allowances of $25,000 and $30,000 respectively, an allowance of interest at 12% on the capital balances at the beginning of the year, with the remaining net income divided equally. Net income for the current year was $120,000.
(a) Present the income division section of the income statement for the current year.
(b) Assuming that the net income had been $50,000 instead of $120,000, present the income division section of the income statement for the current year.
Review and reflect on the knowledge you have gained from this course. Based on your review and reflection, write at least 3 paragraphs each on the following.
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Tiffany Company has two divisions, Gold and Silver. If the internal transfer is made, what would be the impact on Tiffany Company's overall profits
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