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Humbolt Hardware Company is a partnership with net income of $104,000 and needs to split...

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Accounting

Humbolt Hardware Company is a partnership with net income of $104,000 and needs to split this between partners Ethel Hardachre and Manny Kaur. As Ethel Hardachre works full-time in the business, they have an annual salary of $39,200 and contributed 22 of new clients. The other partner, Manny Kaur, put in 6 new clients and has an annual salary of $21,750. The partners split $8,400 of the net income as additional salary based upon the ratio of new clients. The partners invested $22,750(Ethel Hardachre) and $10,875(Manny Kaur). Each partner will receive 8% on their invested capital. Any residual net income or loss will be split based upon the ratio of invested capital. Prepare a schedule (showing calculations) of the split of net income or loss amongst the partners.
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