Barr & Eglin Co. reports net income of $42000. The partnership agreement provides for annual salaries of $24000 for Barr and $18000 for Eglin and interest allowances of $4000 to Barr and $6000 to Eglin. Any remaining income or loss is to be shared 70% by Barr and 30% by Eglin.
Instructions
Compute the amount of net income distributed to each partner.

Question

Quizplus · Accepted Answer

The Answer of Barr & Eglin Co. reports net income of $42000. The partnership agreement provides for annual salaries of $24000 for Barr and $18000 for Eglin and interest allowances of $4000 to Barr and $6000 to Eglin. Any remaining income or loss is to be shared 70% by Barr and 30% by Eglin.
Instructions
Compute the amount of net income distributed to each partner.