Brief Exercise 12-05

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Nabb & Fry Co. reports net income of $31,000. Interest allowances are Nabb $7,000 and Fry $5,000, salary allowances are Nabb $15,000 and Fry $10,000, and the remainder is shared equally. Show the distribution of income. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).)

Division of Net Income
		Nabb		Fry		Total
Salary allowance		$ 15,000		$ 10,000		$ 25,000
Interest allowance		7,000		5,000		12,000
Remaining excess/deficiency		3,000 (Incorrect)		3,000 (Incorrect)		6,000 (Incorrect)
Total division of net income		$ 19,000		$ 12,000		$ 31,000