Rachael and Olivia are business partners in RO Dance.Their partnership agreement states that the partners will share income in a 3:2 ratio (Rachael; Olivia).For the year ended December 31,2021,the partnership earned $120,000.During 2021,Rachael withdrew $20,000 cash from the business and Olivial withdrew $10,000 cash.How much income would be allocated to Olivia?

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The partnership agreement states that the partners will share income in a 3:2 ratio (Rachael; Olivia). So, Olivia's share of the income is 2/5 of the total income. For the year ended December 31, 2021, the partnership earned $120,000. So, Olivia's share of the income is 2/5 * $120,000 = $48,000. However, Olivia withdrew $10,000 cash from the business during 2021. So, her actual share of the income is $48,000 - $10,000 = $38,000.

Rachael and Olivia Are Business Partners in RO Dance