Debbie and Alex formed a new partnership. The partnership agreement specified that income should be allocated in a 2-to-1 ratio, with Debbie receiving the larger portion. If revenue for the first year was $90,000 and expenses were $60,000, how much would be allocated to each partner?

Question

Quizplus · Accepted Answer

The net income is $30,000 ($90,000 revenue - $60,000 expenses). Allocating in a 2-to-1 ratio, Debbie receives $20,000 and Alex receives $10,000.

Debbie and Alex Formed a New Partnership