The partnership agreement of Kenneth, Gise, and Bosco provides for the following income ratio: (a)...
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Accounting
The partnership agreement of Kenneth, Gise, and Bosco provides for the following income ratio: (a) Kenneth, the managing partner, receives a salary allowance of $102000, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Kenneth $590000, Gise $1208000, and Bosco $1799000. If partnership net income is $720000, the amount allocated to Gise should be:
a. $240000.
b. $181200.
c. $155050.
d. $207350.
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