The partnership agreement of Julie and Cathy provides for yearly salary allowances to Julie of $120,000 and to Cathy of $96,000. Each partner will also receive an interest allowance of 10% on their capital balances of $320,000 for Julie and $240,000 for Cathy. Any remaining income will be divided equally. Net Income for the year is $300,000. The amount of income allocated to Julie will be $162,000.

Answer rating: 100% (QA)

To determine the income allocated to Julie we need to break down the allocations according to the pa... View the full answer