Grey,Dailey,and Sanders have formed a partnership.Net income for the first year amounted to $50,400.The partnership agreement states that Grey will receive a salary of $10,000,Dailey will receive $15,000,and Sanders will receive $20,000.They each have capital accounts of $30,000,$40,000,and $50,000 respectively.The contract calls for interest of 12% of their beginning capital balances for each partner.Any profit or loss will be split equally.How much income will each partner receive?

Question

Quizplus · Accepted Answer

The Answer of Grey,Dailey,and Sanders have formed a partnership.Net income for the first year amounted to $50,400.The partnership agreement states that Grey will receive a salary of $10,000,Dailey will receive $15,000,and Sanders will receive $20,000.They each have capital accounts of $30,000,$40,000,and $50,000 respectively.The contract calls for interest of 12% of their beginning capital balances for each partner.Any profit or loss will be split equally.How much income will each partner receive?

Grey,Dailey,and Sanders Have Formed a Partnership