Rachel, Jenna and Lauren are partners with capital balances of $80,000, $10,000, and $10,000, respectively....
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Accounting
Rachel, Jenna and Lauren are partners with capital balances of $80,000, $10,000, and $10,000, respectively. Profit for the year is $150,000. Calculate the share allocation of profits if :
1.The partners agree to divide income based on their beginning-of-year capital balances.
2.The partners agree to divide income based on the ratio of 5:3:2, respectively.
3.The partnership agreement is silent as to division of income.
4.Interest allowances of 10% on their original investments, salary allowances of Rachel, Jenna and Lauren $10,000, $5,000 and $5,000 respectively, and the remainder to be divided equally.
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