Adriana Gonzalez and Sylvester Van Horne formed a partnership, dividing income as follows: 1. Annual salary allowance
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Adriana Gonzalez and Sylvester Van Horne formed a partnership, dividing income as follows:
1. Annual salary allowance to Chen of $25,000.
2. Interest of 5% on each partner’s capital balance on January 1.
3. Any remaining net income divided to Gonzalez and Van Horne, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. How much net income should be distributed to Gonzalez and Van Horne?
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Related Book For
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
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