Provisions regarding the division of net income

Assignment Help Financial Accounting

Reference no: EM131219604

Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $27,000 and $18,000, respectively; and the remainder to be divided equally. How much of the net income of $81,000 is allocated to Xavier?

a. $40,000

b. $3,000

c. $77,500

d. $78,500

Reference no: EM131219604

Questions Cloud

Committee in a managed care organization : 1. What is the role of the credentialing committee in a managed care organization? And why is this function so crucial? 2. What is the role of the medical director in a managed care organization? Why is this such a crucial role for the success of t..

Compute net income per books before tax-taxable income : ABC is a sole proprietorship owned by Clark. Compute ABC’s net income per books before tax. Compute ABC’s taxable income.

Collective bargaining agreement with a grievance procedure : As an employee, would you rather work under a collective bargaining agreement with a grievance procedure in a union setting or in a non-union setting with a company-established grievance procedure that provides the necessary due process protection..

Planning practices interfere with or prohibit : Assess how the current management planning practices interfere with or prohibit the organization's ability to optimally function. You could consider using the fundamental principles of management in your explanation.

Provisions regarding the division of net income : Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary al..

Results of the internal environmental scan : Examine the results of the internal environmental scan findings in the analysis. Examine the results of the external environmental scan findings in the analysis.

Analyse the historical performance of a listed company : Your task is to analyse the historical (for the last five years) performance of a listed company and present your findings in the form of a report, which will cover both qualitative and quantitative performance elements in a logical cohesive forma..

Determine the total estimated cost at completion for project : A contractor has a contract to construct the sanitary sewer, water line, storm drain, and street lighting for a new subdivision. The contractor uses the cost codes in Figure 2-6. The original estimate for the sewer was $25,000 and a $3,200 change ord..

Sourcing decision cycle framework : Describe the Sourcing Decision Cycle Framework and how it helps in making sourcing decisions. What are the key reasons for an IS organization to make its own systems? What are the key reasons for buying an application?

User Account

All Pages