Exercise 1 - Partnership Profit Allocation
The WhyEyeOughta general partnership is comprised of three general partners; Mo, Larry, & Curley. The partnership
agreement calls for profits of the partnership to be allocated as per the following:
Capital balances for each partner as of December 31st, 2017 are as follows:
	Mo	$400,000		Larry	$500,000		Curley	$350,000
The partnership agreement calls for the following distribution of profit (or loss):
A) If there is a profit, each partner is to receive 5% interest on their capital balance at year-end in excess of $450,000
B) Mo & Larry are to receive salaries of $50,000 each; Curley is to receive a salary of $75,000 if there is a profit
C) Larry is to receive a bonus of 10% of partnership profit if there is a profit
D) Any remaining profit or loss is to be allocated to Mo, Larry, & Curley in the ratio of 2:1:2 respectively
Complete the below distribution of income schedule for the partnership if there was a 2017 net income of $500,000 by entering the required figures in the gray shaded cells. When correct, the cells will change color. If a cell is not to have a figure in it, enter the word "zero" in it.
			Mo		Larry		Curley		Total
Interest on Capital
Salaries
Bonus
Sub-Total
Remainder to be Allocated
Total
Complete the below distribution of income schedule for the partnership if there was a 2017 net loss of <$50,000> by entering the required figures in the gray shaded cells. When correct, the cells will change color. If a cell is not to have a figure in it, enter the word "zero" in it.
			Mo		Larry		Curley		Total
Interest on Capital
Salaries
Bonus
Sub-Total
Remainder to be Allocated
Total