Fink & Elston Co. reports net income of $34,000. The partnership agreement provides for annual salaries of $24,000 for Fink and $15,000 for Elston and interest allowances of $4,000 to Fink and $6,000 to Elston. Any remaining income or loss is to be shared 70% by Fink and 30% by Elston.
Instructions
Compute the amount of net income distributed to each partner.

Question

Quizplus · Accepted Answer

The Answer of Fink & Elston Co. reports net income of $34,000. The partnership agreement provides for annual salaries of $24,000 for Fink and $15,000 for Elston and interest allowances of $4,000 to Fink and $6,000 to Elston. Any remaining income or loss is to be shared 70% by Fink and 30% by Elston.
Instructions
Compute the amount of net income distributed to each partner.