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Dividing Partnership Net Income

John Prado and Ayana Nicks formed a partnership, dividing income as follows: Annual salary allowance to Prado, $10,000 and Nicks, $28,000. Interest of 5% on each partner's capital balance on January 1. Any remaining net income divided equally. Prado and Nicks had $20,000 and $50,000, respectively, in their January 1 capital balances. Net income for the year was $30,000. How much net income should be distributed to Prado and Nicks?
Prado: $______
Nicks: $_______

User Brano
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1 Answer

4 votes

Answer:

Prado: $10,000

Nicks: $20,000

Step-by-step explanation:

when you look at it Prado always gets less then Nicks so you just give Nicks more

User Javier Conde
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