During 2013,Carpenter invested $75,000 and DiAngelo invested $90,000 in a partnership.They agreed to share income and loss by allowing a $40,000 per year salary allowance to Carpenter and a $42,000 per year salary allowance to DiAngelo,plus an interest allowance on the partners' beginning-year capital investments at 8%,with the balance to be shared equally.Under this agreement,if the partnership earns net income of $300,000 during 2013 the income allocated to each partner is:
A) $40,000 to Carpenter; $42,000 to DiAngelo.
B) $148,400 to Carpenter; $151,600 to DiAngelo.
C) $43,200 to Carpenter; $45,360 to DiAngelo.
D) $150,000 to Carpenter; $150,000 to DiAngelo.
E) $105,720 to Carpenter; $105,720 to DiAngelo.
Correct Answer:
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