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    Partnership Accounting - Capital, Invest Rates and Profits

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    Partnership Accounting
    Calvert and Powers are partners with an agreement that income is to be
    distributed based on the schedule below. Using that information, calculate
    the amounts to be distributed to each partner for net income amounts #1
    and #2.
    Net Income #1
    $50,000
    Net Income #2
    $36,000
    Calvert
    Powers
    Beginning Capital Balance $50,000 $40,000
    Salary Amount $20,000$12,000
    Interest Rate on Beg Capital Balance10.00%10.00%
    Percentage of Profit/Loss Remainder 60.00%40.00%

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    https://brainmass.com/business/accounting/partnership-accounting-capital-invest-rates-profits-255171

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    Calvert and Powers are partners with an agreement that income is to be
    distributed based on the schedule below. Using that information, calculate
    the amounts to be distributed to each partner for net income amounts #1
    and #2.
    Net Income #1 $50,000
    Net Income #2 $36,000
    Calvert Powers
    Beginning Capital Balance $50,000 $40,000
    Salary ...

    Solution Summary

    The solution explains how to calculate the amount of net income to be distributed to each partner

    $2.19

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