Minoli, Melinda and Matthew are partners. The partnership agreement provides that partners will receive interest of 8% of their average capital balance and a salary allowance as follows:

Required

(a) Prepare a schedule showing how profit will be divided among the three partners if the profit for the year before the adjustments is $320 000.

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Minoli Melinda Matthew $50 000 40 000 40 000 Minoli, who manages the business, will receive a bonus of 25% of the profit in excess of $90 000 after partners' interest and salary allowances. Residual profits will be divided: 1 1 1 Minoli 2 Melinda 3 Matthew 6 During the current year their average capital balances were as follows: Minoli $250 000 Melinda 150 000 Matthew 90 000