The APB partnership agreement specifies that partnership net income be allocated as follows:
Average capital balances for the current year were $50,000 for A,$30,000 for P,and $20,000 for B.

-Refer to the information given.Assuming a current year net income of $50,000,what amount should be allocated to each partner?

Question

The APB partnership agreement specifies that partnership net income be allocated as follows:
Average capital balances for the current year were $50,000 for A,$30,000 for P,and $20,000 for B.
 
-Refer to the information given.Assuming a current year net income of $50,000,what amount should be allocated to each partner?

Quizplus · Accepted Answer

The correct allocation depends on the partnership agreement, which is typically outlined in Option C.

The APB Partnership Agreement Specifies That Partnership Net Income Be