Jay, Sam and Denver are equal partners. At the start of the year they estimated that...
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Jay, Sam and Denver are equal partners. At the start of the year they estimated that they would make $360,000 in profits. Based on the estimate, how much should each partner draw in a month, and what will happen at the end of the year if the partnership makes $480,000 gross and $360,000 in profits (assuming that the partnership's capital is to remain constant from year-to-year)? (Select one.) A B $12,000 each as a draw each month and there are no other payments to the partners at the end of the year $10,000 each as a draw each month and each pays back $60,000 at the end of the year $12,000 each as a draw each month and each partner pays back $160,000 at the end of the year $10,000 each as a draw each month and no additional payments are made to the partners at the end of the year Jay, Sam and Denver are equal partners. At the start of the year they estimated that they would make $360,000 in profits. Based on the estimate, how much should each partner draw in a month, and what will happen at the end of the year if the partnership makes $480,000 gross and $360,000 in profits (assuming that the partnership's capital is to remain constant from year-to-year)? (Select one.) A B $12,000 each as a draw each month and there are no other payments to the partners at the end of the year $10,000 each as a draw each month and each pays back $60,000 at the end of the year $12,000 each as a draw each month and each partner pays back $160,000 at the end of the year $10,000 each as a draw each month and no additional payments are made to the partners at the end of the year
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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