Question

A partnership was formed on January 5 of the current year with the following capital balances: The Articles of Partnership stipulated that profits and losses are assigned as follows: Each partner is allocated interest equal to 10% of the beginning capital balance. Donald is allocated a $40,000 salary Any remaining profits/losses are allocated on a 2:3:5 basis, respectively. Each partner is allowed to withdraw up to $10,000 per year. Net income of $150,000 was earned by the business in the current year. Assuming that each partner withdraws the maximum amount, how much income is allocated to Donald in the current year?

          A partnership was formed on January 5 of the current year with the following capital
balances:
The Articles of Partnership stipulated that profits and losses are assigned as follows:
Each partner is allocated interest equal to 10% of the beginning capital balance.
Donald is allocated a $40,000 salary
Any remaining profits/losses are allocated on a 2:3:5 basis, respectively.
Each partner is allowed to withdraw up to $10,000 per year.
Net income of $150,000 was earned by the business in the current year.
Assuming that each partner withdraws the maximum amount, how much income is
allocated to Donald in the current year?

A partnership was formed on January 5 of the current year with the following capital
balances:
The Articles of Partnership stipulated that profits and losses are assigned as follows:
Each partner is allocated interest equal to 10% of the beginning capital balance.
Donald is allocated a 40,000 salary
Any remaining profits/losses are allocated on a 2:3:5 basis, respectively.
Each partner is allowed to withdraw up to10,000 per year.
Net income of 150,000 was earned by the business in the current year.
Assuming that each partner withdraws the maximum amount, how much income is
allocated to Donald in the current year?

Added by Eric H.

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