qs 12 - 5 (algo) partnership income allocation lo p2\nstolton and bright are partners in a business they…

qs 12 - 5 (algo) partnership income allocation lo p2\nstolton and bright are partners in a business they started two years ago. the partnership agreement states that stolton should receive a salary allowance of $13,800 and that bright should receive a $24,700 salary allowance. any remaining income or loss is to be shared equally.\ndetermine each partners share of the current years net income of $50,800.\nnote: enter all allowances as positive values. enter losses, if any, as negative values.\nallocation of partnership income\n| | stolton | bright | total |\n|--|--|--|--|\n| net income | | | $50,800 |\n| salary allowances | | | |\n| balance of income | | | |\n| balance allocated equally | | | |\n| balance of income | | | |\n| shares of the partners | | | |

qs 12 - 5 (algo) partnership income allocation lo p2\nstolton and bright are partners in a business they started two years ago. the partnership agreement states that stolton should receive a salary allowance of $13,800 and that bright should receive a $24,700 salary allowance. any remaining income or loss is to be shared equally.\ndetermine each partners share of the current years net income of $50,800.\nnote: enter all allowances as positive values. enter losses, if any, as negative values.\nallocation of partnership income\n| | stolton | bright | total |\n|--|--|--|--|\n| net income | | | $50,800 |\n| salary allowances | | | |\n| balance of income | | | |\n| balance allocated equally | | | |\n| balance of income | | | |\n| shares of the partners | | | |

Answer

Explanation:

Step1: Calculate total salary allowances

$13800 + 24700=38500$

Step2: Calculate balance of income

$50800 - 38500 = 12300$

Step3: Allocate balance equally

Each partner's share of balance = $\frac{12300}{2}=6150$

Step4: Calculate each partner's total share

Stolton's share = $13800+6150 = 19950$ Bright's share = $24700+6150=30850$

Answer:

Stolton Bright Total
Net income $50800$
Salary allowances $13800$ $24700$ $38500$
Balance of income $12300$
Balance allocated equally $6150$ $6150$ $12300$
Balance of income $0$ $0$ $0$
Shares of the partners $19950$ $30850$ $50800$