Ash and Bar are partners with capital balances on January 1, 2016, of $70,000 and $80,000, respectively.

Question:

Ash and Bar are partners with capital balances on January 1, 2016, of $70,000 and $80,000, respectively. The agreement provides that each partner is allowed 10 percent interest on beginning capital balances; that Ash receives a salary allowance of $20,000 per year and a 20 percent bonus of income after interest, salary allowance, and bonus; and that remaining income is divided equally.
REQUIRED:
Prepare an income schedule to show how the $160,000 net income for 2016 should be divided.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... 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...