The net income of the Rice and Nance partnership is $180,000. The partnership agreement specifies that Rice and Nance have a salary allowance of $48,000 and $72,000, respectively. The partnership agreement also specifies an interest allowance of 10% on capital balances at the beginning of the year. Each partner had a beginning capital balance of $120,000. Any remaining net income or net loss is shared equally.
What is Rice's share of the $180,000 net income?

Question

Quizplus · Accepted Answer

The Answer of The net income of the Rice and Nance partnership is $180,000. The partnership agreement specifies that Rice and Nance have a salary allowance of $48,000 and $72,000, respectively. The partnership agreement also specifies an interest allowance of 10% on capital balances at the beginning of the year. Each partner had a beginning capital balance of $120,000. Any remaining net income or net loss is shared equally.
What is Rice's share of the $180,000 net income?

The Net Income of the Rice and Nance Partnership Is