Norma and Marilyn are partners. The partnership agreement provides that Norma will receive a salary of $36,000 and Marilyn will receive a salary of $58,000. These salaries were paid to the partners during 2019 and were charged to the partners' drawing accounts. Both partners also receive 8 percent on their capital balances at the beginning of the year. The balance of any remaining profits or losses is divided equally. The beginning capital account balances for 2019 were Norma, $80,000, and Marilyn, $40,000. At the end of the year, the partnership has a net income of $110,000.
1. What amount of net income or loss will be allocated to Norma?
2. What amount of net income or loss will be allocated to Marilyn?

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The Answer of Norma and Marilyn are partners. The partnership agreement provides that Norma will receive a salary of $36,000 and Marilyn will receive a salary of $58,000. These salaries were paid to the partners during 2019 and were charged to the partners' drawing accounts. Both partners also receive 8 percent on their capital balances at the beginning of the year. The balance of any remaining profits or losses is divided equally. The beginning capital account balances for 2019 were Norma, $80,000, and Marilyn, $40,000. At the end of the year, the partnership has a net income of $110,000.
1. What amount of net income or loss will be allocated to Norma?
2. What amount of net income or loss will be allocated to Marilyn?

Norma and Marilyn Are Partners