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Tim and Las have been operating an accounting firm as partners for a number of years, and at the beginning of 2016 their capital balances were $60000 and $75000 respectively During 2016

Tim and Las have been operating an accounting firm as partners for a number of years, and at the beginning of 2016, their capital balances were $60,000 and $75,000, respectively. During 2016, Tim invested an additional $10,000 on April 1 and withdrew $6,000 on August 30. Las withdrew $12,000 on May 1 and withdrew another $6,000 on November 1. In addition, Tim and Las withdrew their salary allowances of $18,000 and $24,000, respectively. At year-end 2016, total capital of the Tim-Las partnership was $182,000. Tim and Las share income after salary allowances in a 60:40 ratio. REQUIRED 1. Determine average capital balances for Tim and Las for 2016. 2. Allocate 2016 partnership income to Tim and Las.

Jul 11 2020 View more View Less

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