Question (a): Dividing Partnership Net Income. Required: Steve Conyers and Chelsy Poodle formed a partnership, dividing income as follows:...

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Accounting

Question (a):
Dividing Partnership Net Income.
Required:
Steve Conyers and Chelsy Poodle formed a partnership, dividingincome as follows: Annual salary allowance to Poodle of $170,500.Interest of 6% on each partner's capital balance on January 1. Anyremaining net income divided to Conyers and Poodle, 1:2. Conyersand Poodle had $77,600 and $75,000, respectively, in their January1 capital balances. Net income for the year was $310,000. How muchis distributed to Conyers and Poodle?
Question (b):
Liquidating Partnerships
Prior to liquidating their partnership, Perkins and Brooks hadcapital accounts of $46,000 and $74,000, respectively. Prior toliquidation, the partnership had no cash assets other than what wasrealized from the sale of assets. These partnership assets weresold for $144,000. The partnership had $5,000 of liabilities.Perkins and Brooks share income and losses equally. Determine theamount received by Brooks as a final distribution from liquidationof the partnership.

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Answer Calculation of distribution of net income to Conyers and Poodle Net Income Conyers Poodle 31000000 Salary allowance 17050000 17050000 Interest on capital 6 of 46000 276000 See Answer

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