QUESTION 24 Scrooge and Marley have a partnership agreement which includes the f

Q: QUESTION 24 Scrooge and Marley have a partnership agreement which includes the f

Scrooge Marley Salary 54,000 36,000 Interest 9,000 12,000 Total Salary and Interest 63,000 48,000 Remaining Income 5,400 3,600 Total Division 68,400 51,600 Remaining Income = Total Income – Salary – Interest = 120,000 – (54,000+36,000) – (9,000+12000) = 9,000 Scrooge Marley Salary 54,000 36,000 Interest 9,000 12,000 Total Salary and Interest 63,000 48,000 Remaining Income 5,400 3,600 Total Division 68,400 51,600

ID: 2595505 • Letter: Q

Question

QUESTION 24 Scrooge and Marley have a partnership agreement which includes the following provisions regarding sharing net income or net loss a) A salary allowance of $54,000 to Scrooge and $36,000 to Marley b) An nterest allowanc e of 10% on capital balances at the begn ng of the year c)Tho rernander to be dvded 60% to Scrooge and 40% to Marley The capital balance on January 1,2017, for Scrooge and Marley was 590,000 and $120,000, respectively During 2017, the Scrooge and Marley Partnership had net income of $120,000 Enter the missing values in the schedule below, and caculate the division of n net income to the partner for the year Division of Net Income Maley Scrooge Total Salary allowance Interest allowance Total salaries and interest Remaining inc ome Total division QUESTION 25

Explanation / Answer

Scrooge

Marley

Salary

54,000

36,000

Interest

9,000

12,000

Total Salary and Interest

63,000

48,000

Remaining Income

5,400

3,600

Total Division

68,400

51,600

Remaining Income = Total Income – Salary – Interest

= 120,000 – (54,000+36,000) – (9,000+12000)

= 9,000