John Prado and Ayana Nicks formed a partnership, dividing income as follows: 1. Annual salary allowance to

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John Prado and Ayana Nicks formed a partnership, dividing income as follows:

1. Annual salary allowance to Nicks of $38,000.

2. Interest of 5% on each partner's capital balance on January 1.

3. Any remaining net income divided equally.

Prado and Nicks had $20,000 and $50,000, respectively, in their January 1 capital bal- ances. Net income for the year was $112,000. How much net income should be distributed to Nicks?

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Related Book For answer-question

Accounting

ISBN: 978-1133607601

25th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Question Posted: Jan 18, 2017 01:23 AM

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John Prado and Ayana Nicks formed a partnership, dividing income as follows: 1. Annual salary allowance to

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Distributed to Prado and Nicks Prado Nicks Total Annual salary 0 380...View the full answer

Accounting

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