.Dividing Partnership Net Income
Required:
Steve King and Chelsy Dane formed a partnership, dividing income as follows:
1. Annual salary allowance to King of $176,130.
2. Interest of 7% on each partner's capital balance on January 1.
3. Any remaining net income divided to King and Dane, 1:2.
King and Dane had $45,000 and $105,000, respectively, in their January 1 capital balances. Net income for the year was $309,000. How much is distributed to King and Dane?
Note: Compute partnership share.
King: fill in the blank 1
Dane: fill in the blank 2
