Christie and Jergens formed a partnership with capital contributions of $220,000 and $320,000, respectively. Their...
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Accounting
Christie and Jergens formed a partnership with capital contributions of $220,000 and $320,000, respectively. Their partnership agreement calls for Christie to receive a $52,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $116,000, then Christie and Jergens's respective shares are:
Multiple Choice
$79,000; $37,000.
$74,000; $32,000.
$32,000; $84,000.
$58,000; $58,000.
$47,259; $68,741.
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