Partnership Income Allocation-Various Options The January 1, 2017, balance sheet of the partnership of Linda...
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Partnership Income Allocation-Various Options The January 1, 2017, balance sheet of the partnership of Linda Kingston and Jeannette Allen is shown below. The partnership reported revenues of $96,000 and expenses of $66,000 for 2017. Neither partner withdrew funds from the partnership during the year. Kingston invested $9,600 in the firm on June 28,2017. Required Compute the December 31, 2017, capital balance for each partner under each of the following assumptions: (a) The partnership agreement does not specify how income is to be divided. (b) The partnership agreement specifies that Kingston receives 65 percent of income and Allen 35 percent. beginning of the year. Salary and interest allocations are to be fully implemented. Any remaining income is to be divided equally
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