Don Ferris and Lou Lindberg are the two partners in F&L Partnership. The partnership agreement provides that

Question:

Don Ferris and Lou Lindberg are the two partners in F&L The agreement provides that all income is allocated equally between Don and Lou but in no case shall the allocation to Don be less than $75,000 per year. (In other words, Don has a minimum guarantee of $75,000.) This year, F&L generated $107,200 net profit. Compute F&L’s taxable income for the year and each partner’s distributive share of that income. Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...