Assume that there are three sisters in a partnership, A, B, and C. Partner C provides services to the partnership and is entitled to a salary of $75,000. In addition, assume that the Partnership Agreement provides for an interest allocation of 6% based on the weighted-average Capital Account balance during the year. There is a balance in each Capital Account for Partners A and B of $750,000 for the full year. Partner C, however, was admitted to the partnership for an initial capital contribution of $500,000 on April 30 Finally, assume that the partnership revenues less expenses (other than salary to Partner C and interest on capital balances) are $658,000 and that the Partnership Agreement provides for a sharing ratio of 35%/35%/30% for Partners A, B, and C, respectively. Prepare a schedule for the allocation of profit to the partners.

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Solution Solution partnes A parothes B Paotney C Total Net income before ded... View the full answer