1) Ramona Stolton and Jerry Bright are partnerships in a business they started t
ID: 2434911 • Letter: 1
Question
1) Ramona Stolton and Jerry Bright are partnerships in a business they started two years ago. The partnership agreement states that Stolton should receive a salary allowance of 30,000$ and that Bright should receive a 40,000$ salary allowance. Any remaining income or loss is to be shared equally. Determine each partners share of the current years net income of $104,000.2) Hiram and Tyrone are partners who agree that Hiram will receive a 50,000$ salary allowance and that any remaining income or loss will be shared equally. If Tyrone's capital account is credited for $1,000 as her share of the net income in a given period, how much net income did the partnership earn in that period?
Explanation / Answer
Total income $104,000 Salaries of both the partners($40000+$30000) $70,000 Net income after salaries $34,000 Both the partners are sharing profits and losses equally Individual income of each partner=34000/2 $17,000 2. Salary allowance of Hiram $50,000 Note partners are sharing profit and losses equally, when Tyrone is credited with a profit of $1000,natually Hiram will also get a credit of $1000, $2,000 Total income $52,000
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