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What is alex share of the net income

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The net income of the Alex and Browning partnership is $250,000. The partnership agreement specifies that Alex and Browning have a salary allowance of $120,000 and $180,000, respectively. The partnership agreement also specifies an interest allowance of 10% on capital balances at the beginning of the year. Each partner had a beginning capital balance of $300,000. Any remaining net income or net loss is shared equally.

Problem 1: What is Alex's share of the $450,000 net income?

a. $120,000
b. $300,000
c. $95,000
d. $155,000

Reference no: EM132688942

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