Ramona Stolton and Jerry Bright are partners in a business they started two years ago. The partnership

Question:

Ramona Stolton and Jerry Bright are partners in a business they started two years ago. The agreement states that Stolton should receive a salary allowance of $30,000 and that Bright should receive a $40,000 salary allowance. Any remaining income or loss is to be shared equally. Determine each partner’s share of the current year’s net income of $104,000.

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...