M. Lin and R. Chow have partnership capital balances of HK$40,000 and HK$80,000, respectively (amounts in thousands).

Question:

M. Lin and R. Chow have partnership capital balances of HK$40,000 and HK$80,000, respectively (amounts in thousands). The partnership agreement indicates that net income or net loss should be shared equally. If net income for the partnership is HK$42,000, how should the net income be divided?

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...

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