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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.