Reardon and Reese had capital balances of $140,000 and $160,000,respectively,at the beginning of the current fiscal year.The partnership agreement provides for salary allowances of $25,000 and $35,000,respectively; an allowance of interest at 12% on the capital balances at the beginning of the year; and the remaining net income divided equally.Net income for the current year was $120,000.

Question

Reardon and Reese had capital balances of $140,000 and $160,000,respectively,at the beginning of the current fiscal year.The partnership agreement provides for salary allowances of $25,000 and $35,000,respectively; an allowance of interest at 12% on the capital balances at the beginning of the year; and the remaining net income divided equally.Net income for the current year was $120,000.​  ​

Quizplus · Accepted Answer

The Answer of Reardon and Reese had capital balances of $140,000 and $160,000,respectively,at the beginning of the current fiscal year.The partnership agreement provides for salary allowances of $25,000 and $35,000,respectively; an allowance of interest at 12% on the capital balances at the beginning of the year; and the remaining net income divided equally.Net income for the current year was $120,000.​  ​

Reardon and Reese Had Capital Balances of $140,000 and $160,000,respectively,at