Multiple Choice
Apply the interest allowance method; each partner earns interest on their capital investment at a rate of 10%. Compute Julie and Jennifer's share of net income if Julie invested $52,000 and Jennifer invested $38,000. The remainder after distribution on interest on capital is to be divided equally. Net income was $12,000.
A) Julie $5,200; Jennifer $3,800
B) Julie $6,700; Jennifer $5,300
C) Julie $6,000; Jennifer $6,000
D) None of these answers is correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q120: Discuss (a) the purpose of the articles
Q121: Sue invests $10,000 for a one-fourth interest
Q122: Indicate the account(s) to be debited and
Q123: Which of the following is NOT generally
Q124: The Ben and Jill partnership agree to
Q125: Indicate the account(s) to be debited and
Q126: The net income earned by the Brian,
Q127: A partner may withdraw from a partnership
Q129: Applying the interest allowance method, compute Taylor
Q130: Carl, Brian, and Ann share profits and