The Prince-Robbins partnership has the following capital account balances on January 1, 2015 Prince, Capital.......................$ 80,000 Robbins,

Question:

The Prince-Robbins has the following capital account balances on January 1, 2015
Prince, Capital.......................$ 80,000
Robbins, Capital.........................70,000
Prince is allocated 70 percent of all profits and losses with the remaining 30 percent assigned to Robbins after interest of 7 percent is given to each partner based on beginning capital balances.
On January 2, 2015, Jeffrey invests $43,000 cash for a 20 percent interest in the This transaction is recorded by the method. After this transaction, 7 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50%), Robbins (30%), and Jeffrey (20%). In 2015, the reports a net income of $12,000.
Determine the allocation of income at the end of 2015.
Goodwill
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