Lopez and Gomez are members in an LLC that reports net income of $130,000. An agreement states
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Lopez and Gomez are members in an LLC that reports net income of $130,000. An agreement states that Lopez receives a $20,000 salary allowance and Gomez receives a $50,000 salary allowance. Any remaining income or loss is to be shared by Lopez and Gomez in a 2:3 ratio (in percents: Lopez, 40%; Gomez, 60%).
1. Determine each member’s share of net income.
2. Prepare the entry to record the closing of Income Summary.
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