Table 12-4
Jana Jones, Jill Jacks, and Carolle Cann formed a partnership by investing $250,000, $200,000, and $150,000, respectively. They agreed to share profits as follows:
1) An annual allocation for the service each partner contributes to the partnership: $40,000 to Jana, $20,000 to Jill, and $30,000 to Carolle.
2) Interest on their original capital balances of 10%.
3) Any remainder equally.
-Refer to Table 12-4.Assuming the business has income of $60,000 during its first year,the amount allocated to Jill is:

Question

Table 12-4
Jana Jones, Jill Jacks, and Carolle Cann formed a partnership by investing $250,000, $200,000, and $150,000, respectively. They agreed to share profits as follows:
1) An annual allocation for the service each partner contributes to the partnership: $40,000 to Jana, $20,000 to Jill, and $30,000 to Carolle.
2) Interest on their original capital balances of 10%. 
3) Any remainder equally.
-Refer to Table 12-4.Assuming the business has income of $60,000 during its first year,the amount allocated to Jill is:

Quizplus · Accepted Answer

The income of $60,000 is first allocated for services: $40,000 to Jana, $20,000 to Jill, and $30,000 to Carolle, totaling $90,000. Since the income is only $60,000, Jill receives her full service allocation of $20,000, but no interest or remainder is available.

Table 12-4 Jana Jones, Jill Jacks, and Carolle Cann Formed a Partnership