Nancy and Betty enter into a partnership agreement where they decide to share profits according to the following rules 

a) Yancey and Buddy will receive salaries of $1700 and $14,500 respectively as the first allocation 

b) the next allocation is based on 20% of each partners capital balance 

c) any remaining profit or loss is to be allocated completely to Buddy 

The partnerships net income for the first year is $50,000 Nancy’s capital balance is $83,000 and Betty’s capital balance is 11,000 at the end of the year calculated shares of profit and loss to be allocated to Betty

Answer rating: 100% (QA)

To calculate the shares of profit and loss to be allocated to Betty well follow the rules outlined i... View the full answer