Partnership agreement specifies the manner in which income

Reference no: EM13913211

Income Distribution of a Partnership (Appendix) Louise Abbott and Buddie Costello are partners in a comedy club business. The partnership agreement specifies the manner in which income of the business is to be distributed. Louise is to receive a salary of $20,000 for managing the club. Buddie is to receive interest at the rate of 10% on her capital balance of $300,000. Remaining income is to be distributed at a 2-to-1 ratio. Required: Determine the amount that should be distributed to each partner assuming the following business net incomes: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Indicate losses with a minus sign. Income Level Abbott's Total Share Costello's Total Share 1. $15,000 $ $ 2. $50,000 $ $ 3. $80,000 $ $

Reference no: EM13913211

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