Home / Questions / Division of Income C Eastwood A North and M West are manufacturers’ representatives in th...
Division of Income
C. Eastwood, A. North, and M. West are manufacturers’ representatives in the architecture busi- ness. Their capital accounts in the ENW partnership for 20X1 were as follows:
C. Eastwood, Capital
A. North, Capital
M. W est, Capital
|
9/1 8,000 |
1/1 |
30,000 |
|
3/1 9,000 |
1/1 |
40,000 |
|
8/1 |
12,000 |
1/1 |
50,000 |
|
|
5/1 |
6,000 |
|
|
7/1 |
5,000 |
|
|
|
4/1 |
7,000 |
|
|
|
|
|
|
9/1 |
4,000 |
|
|
|
6/1 |
3,000 |
Required
For each of the following independent income-sharing agreements, prepare an income distribution schedule.
a. Salaries are $15,000 to Eastwood, $20,000 to North, and $18,000 to West. Eastwood receives a bonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of ending capital balances. Eastwood, North, and West divide any remainder in a 3:3:4 ratio, respectively. Net income was $78,960.
b . Interest is 10 percent of weighted-average capital balances. Salaries are $24,000 to Eastwood,
$21,000 to North, and $25,000 to West. North receives a bonus of 10 percent of net income after deducting the bonus and her salary. Any remainder is divided equally. Net income was $68,080.
c. West receives a bonus of 20 percent of net income after deducting the bonus and the salaries.
Salaries are $21,000 to Eastwood, $18,000 to North, and $15,000 to West. Interest is 10 percent of beginning capital balances. Eastwood, North, and West divide any remainder in an 8:7:5 ratio, respectively. Net income was $92,940.
Jul 14 2020 Read more Less More
Each arm of a Proell governor is 240 mm long and each rotating ball has a mass of 3 kg. The central load acting on the sleeve is 30 kg. The pivots of all arms are 30 mm f...
May 13 2020What is the present value of Rs. 6000 receivable after two years at a discount rate of 5% under continuous discounting? [A]Rs. 5429.02 [B]Rs. 6000 [C]Rs. 5700 [D]Rs. 6300
Jan 03 2018Calculation of individual costs and WACC: Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average...
Apr 13 20201- What components of GDP (if any) would each of the following transactions affect?A) A family buys a new refrigerator.B) Auntsara buys a new house.C) Royal commission of...
Jun 05 2018Mountain Drycleaners had $91,000 of total assets and $7,000 of total stockholders’ equity at December 31, 2012. At December 31, 2013, Mountain Drycleaners had assets tota...
May 06 2020A citizen (player 1) must choose whether or not to file taxes honestly or whether to cheat. The tax man (player 2) decides how much effort to invest in auditing and can c...
Aug 10 2020Hi I need help completing: Net Present Value analysis of proposed strategy’s new cash flow and EPS/EBIT analysis NOTE: To construct the first cash flow (cf1) at the ver...
Nov 08 2017Which of the following is/are postulates of the path – goal theory? I. The leader clearly defines the path to goal attainment for subordinates. II. The leader motivates...
Apr 06 2018The solid steel shaft fits loosely inside of the aluminum tube as shown. Both the shaft and tube are rigidly constrained at the left end. A pin is installed through pre-...
May 24 2020Consider a 20-year, $180,000 mortgage with an interest rate of 5.50 percent. After five years, the borrower (the mortgage issuer) pays it off. How much will the lender receive? >
May 22 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.
