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# Durango's and Verde's respective shares

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8. Durango and Verde formed a partnership with capital contribution of \$150,000 and \$190,000, respectively. Their partnership agreement called for Durango to receive a \$50,000 annual salary allowance. They also agreed to allow each partner a share of income equal to a 10% of their initial capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is \$120,000, what are Durango's and Verde's respective shares?

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Durango 10% of their initial capital investments = \$150,000 x 10% = \$15,000
Verde 10% of their initial capital investments = \$190,000 x 10% = \$19,000
Total ...

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This solution is comprised of a detailed explanation to answer Durango's and Verde's respective shares.

\$2.49