The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit
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Question:
The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence:
• Jones, the managing partner, receives a bonus equal to 15 percent of the business’s profit.
• Each partner receives 16 percent interest on average capital investment.
• Any residual profit or loss is divided equally.
The average capital investments for 2015 were as follows:
Jones $ 160,000
King 320,000
Lane 480,000
How much of the $72,000 partnership profit for 2015 should be assigned to each partner?
Related Book For
Business Statistics a decision making approach
ISBN: 978-0133021844
9th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
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