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 $12,600 and that Bright should receive a $19,200 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 $54,300. (Enter all values as positive amounts.)

Allocation of Partnership Income Stolton Bright Total Net Income 54,300 Salary allowances 0 Balance of income Balance allocated equally 0 Balance of income $0 Shares of the partners $0 $0

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 $12,600 and that Bright should receive a $19,200 salary allowance. Any remaining income or loss is to be shared equally.

Explanation / Answer

Determine each partner’s share of the current year’s net income of $54,300

Allocation of Partnership Income Stolton Bright Total Net Income 54,300 Salary allowances 12600 19200 31,800 Balance of income 22500 Balance allocated equally 11250 11250 22500 Balance of income $0 Share of partners 23850 30450

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