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Why do profit agreements provide for salary allowances

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Reference no: EM132781345

Problem 1: Why is interest on partner's capital allowed in the distribution of profit ? Is it allowed even if the operations resulted to a loss?

Problem 2: Why do profit agreements provide for salary allowances? Are salary allowances expenses of the partnership?

Problem 3: If a bonus is allowed to a partner, what are the common bases for its computation

Reference no: EM132781345

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