1 answer

Partners Eli and Alex have agreed to share profits and losses in an 80:20 ratio respectively,...

Question:

Partners Eli and Alex have agreed to share profits and losses in an 80:20 ratio respectively, after Eli is allowed a salary allowance of $70600 and Alex is allowed a salary allowance of $35100. If the partnership had net income of $70300 for 2020, Alex’s share of the income would be


Answers

Total Income of Partnership $176000
Profit share of Eli $140800
Profit share of Alex $35200
Net income of Partnership $70300
Profit share of Eli $56240
Profit share of Alex $14060
Calculation of Alex's share of Income
Profit share of Alex $14060
Salary allowance of alex $35100
Alex's share of Income $49160
.

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