Corn, Beef, and Hash established a partnership. The partnership rules state that income will be...
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Corn, Beef, and Hash established a partnership. The partnership rules state that income will be distributed by: 1) Beef receives $10,000 salary (2) each partner receives 5% interest on average capital balances (3) remaining income is distributed 3:2:1 (Corn, Beef, Hash) (4) The amount draw exceeds income for any partner must be contributed back to the partnership The year begins with capital as follows: Corn = $45,000, Beef = $40,000, Hash = $30,000. During the year, Corn had draw of $5,000 taken July 1, Beef took draw of $5,000 on May 1 and another $5,000 on September 1, and Hash took $8,000 draw on January 1. There are two independent situations. In situation #1, the partnership earns $74,975. In situation #2, the partnership earns $25,175. For each of these, what would be the amount of income distributed to each partner? What would be the ending capital balance for each partner? Don't use $ signs, but do add commas! For negatives, use - In situation #1, income to Corn is , Beef gets and Hash gets The end of year capital balances are Corn Beef and Hash In situation #2, income to Corn is Beef gets and Hash gets The end of year capital balances are Corn Beef and Hash
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