What\'s the total income allocated to James for the year? Question 6 options: $1

Question

What's the total income allocated to James for the year?

Question 6 options:

$10,360

$10,040

$8,500

$9,600

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$10,360

$10,040

$8,500

$9,600

show work

James, Keller, and Rivers have the following capital balances, $48,000, $70,000 and $90,000 respectively. Because of a cash shortage James invests an additional $12,000 on June 1st Each partner withdraws $1,000 per month. James, Keller, and Rivers receive a salary of $13,000, $15,000 and $20,000, respectively, for work done during the year. Each partner receives interest of 8% on their weighted average capital balance without regard to normal drawings. Any remaining profits are split 20%, 30%, and 50% respectively. The net income for the year is $30,000. Spectre ach

Explanation / Answer

Answer is $ 10360 Allocation of Income James Keller Rivers Total Net income 30000 Salary Allowance 13000 15000 20000 -48000 Remaining Income -18000 Interest allowance 4400 5600 7200 -17200 (8% on 55000, 70000 and 90000) Remaining Inocme -35200 Share of loss distributed in 2:3:5 -7040 -10560 -17600 35200 Share of Income 10360 10040 9600 0

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