Calculate each partner''s share of the net income

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Reference no: EM1315181

Calculation of each partner's share of the net income.

At the end of the first year of operations on 12/31/08, FMR Company's accounts show the following:

Partner	Drawings	Capital	Salary Allowance
Fred	$ 15,000	$ 36,000	8,000
McFeeley	10,000	22,000	12,000
Rogers	20,000	42,000	25,000

The capital balance represents each partner's initial capital investment. The Net Income for 2008 was $27,000. Each partner is allowed 10% interest on beginning capital balances. Each partner gets a salary allowance. The remainder is shared in the ratio 3:4:3.

Calculate each partner's share of the Net Income. Show your calculations.

Fred
McFeeley
Rogers

Reference no: EM1315181

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