On January 1st 2020 the PSST partnership had the following capital accounts: Schiff $510,000 Schumer $600,000...

 

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On January 1st 2020 the PSST partnership had the following capital accounts: Schiff $510,000 Schumer $600,000 Pelosi $700,000 Trump $1,000,000 The partnership agreement states the following: Partners would receive 10% interest on their beginning of the year capital accounts Schiff receives a salary of $10,000 per year Trump receives a salary of $50,000 per year Pelosi takes $24000 per year out of her capital account for cosmetics Trump takes $30,000 per year out of his capital account for orange hair dye profits are shared equally Losses are: 40% Schumer 30% Schiff 20% Pelosi and 10% Trump In 2020 the partnership reported income of $800,000 [before interest and partner salaries] In 2021 the partnership reported income of $200,000 [before interest and partner salaries] In 2022 the partnership reported income of $750,000 [before interest and partner salaries ] REQUIRED: for 2020,2021 and 2022 determine a) each partners share of partnership income b) each partners ending capital balance. On January 1st 2020 the PSST partnership had the following capital accounts: Schiff $510,000 Schumer $600,000 Pelosi $700,000 Trump $1,000,000 The partnership agreement states the following: Partners would receive 10% interest on their beginning of the year capital accounts Schiff receives a salary of $10,000 per year Trump receives a salary of $50,000 per year Pelosi takes $24000 per year out of her capital account for cosmetics Trump takes $30,000 per year out of his capital account for orange hair dye profits are shared equally Losses are: 40% Schumer 30% Schiff 20% Pelosi and 10% Trump In 2020 the partnership reported income of $800,000 [before interest and partner salaries] In 2021 the partnership reported income of $200,000 [before interest and partner salaries] In 2022 the partnership reported income of $750,000 [before interest and partner salaries ] REQUIRED: for 2020,2021 and 2022 determine a) each partners share of partnership income b) each partners ending capital balance.

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Answer Solution Assuming Fluctuating capital method In this method all the entries ... View the full answer