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McCaffrey and Levin have capital balances on January 1 of $50,000 and $35,000, respectively. The partnership-income sharing agreement provides for (1) annual salaries of $15,000 for McCaffrey and $10,000 for Levin, (2) interest at 5% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McCaffrey and 40% by Levin.
A schedule showing the distribution of net income, assuming net income is $55,000. (The Division of Net Income Schedule must be submitted to receive full credit.)
Question 1: What is the division of net income?McCaffrey ?Levi ?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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