Ken Danolo and Jim Goldman form a partnership, investing $96,000 and $168,000, respectively. Determine their shares of

Question:

Ken Danolo and Jim Goldman form a partnership, investing $96,000 and $168,000, respectively.

Determine their shares of net income or net loss for each of the following situations:

a. Net loss is $124,800, and the partners have no written partnership agreement.

b. Net income is $105,600, and the partnership agreement states that the partners share profits and losses based on their capital investments.

c. Net income is $264,000. The first $132,000 is shared based on the partner capital investments. The next $100,000 is shared based on partner service, with Danolo receiving 40 percent and Goldman receiving 60 percent. The remainder is shared equally.

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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 978-0132690089

9th Canadian Edition volume 2

Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

Question Posted: