USE THE FOLLOWING INFORMATION FOR QUESTION 23 THROUGH 24.
The partnership agreement of Nancy, Olga, and Paula provides for the
Following distribution of profit and losses:
Salary..........Nancy Olga Paula
Interest on average capital. $60,000 $50,000 $40,000
Average capital balance....... 10% 10% 10%
Remainder. $20,000 $30,000 $50,000
40% 30% 30%
23. If the partnership net income for 20x1 is $300,000, what is Nancy's
share?
A. $56,000
B. $100,000
C. $118,000
D. $120,000
24 If partnership net income for 20x1 is $100,000, what is Olga's
share
A. $(18,000)
B. $33,333
C. $35,000
D. $53,000