Ann Stolton and Susie Bright are partners in a business they started two years a

Question

Ann Stolton and Susie Bright are partners in a business they started two years ago. The partnership agreement states that Stolton should receive a salary allowance of $10,800 and that Bright should receive a $24,800 salary allowance. Any remaining income or loss is to be shared equally.

Determine each partner’s share of the current year’s net income of $52,400. (Enter all values as positive amounts.)

Ann Stolton and Susie Bright are partners in a business they started two years ago. The partnership agreement states that Stolton should receive a salary allowance of $10,800 and that Bright should receive a $24,800 salary allowance. Any remaining income or loss is to be shared equally.

Explanation / Answer

Allocation of Partnership Income Stolton Bright Total Net Income 52,400 Salary allowances        10,800        24,800        35,600 Balance of income        16,800 Balance allocated equally           8,400           8,400        16,800 Balance of income                  -   Shares of the partners        19,200        33,200

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