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The partnership agreement of Nieto, Keller, and Pickert provides for the subsequent income ratio: (a) Nieto, the managing partner, receives a salary allowance of $36,000, (b) every partner receives 15 percent interest on average capital investment, and (c) remaining net income or loss is divided evenly. The average capital investments for the year were: Nieto $200,000, Keller $400,000, and Pickert $600,000. If partnership net income is $180,000, the amount distributed to Nieto should be? and describe to how did we get the anwer.
Check by number the accounting assumption, principle, or constraint that explains each situation below. Do not use a number more than once.
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