The ADF Partnership consists of three partners, Ansel, Davis, and Findley. The partnership agreement provides for annual salaries of $30,000 to Ansel, $40,000 to Davis, and $75,000 to Findley. Residual profits are shared in a 2:1:2 ratio. Salaries are to be fully implemented. Partnership income for the year is $180,000. Ansel's share of income is Select one: O a. $30,000. O b. $44,000. c. $72,000. Od. $37.000, O
The ADF Partnership consists of three partners, Ansel, Davis, and Findley. The partnership agreement provides for annual salaries of $30,000 to Ansel, $40,000 to Davis, and $75,000 to Findley. Residual profits are shared in a 2:1:2 ratio. Salaries are to be fully implemented. Partnership income for the year is $180,000. Ansel's share of income is Select one: O a. $30,000. O b. $44,000. c. $72,000. Od. $37.000, O
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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Transcribed Image Text:The ADF Partnership consists of three partners, Ansel, Davis, and Findley. The partnership agreement provides for annual
salaries of $30,000 to Ansel, $40,000 to Davis, and $75,000 to Findley. Residual profits are shared in a 2:1:2 ratio. Salaries
are to be fully implemented.
Partnership income for the year is $180,000. Ansel's share of income is
Select one:
Ⓒa. $30,000.
O
b. $44.000.
c. $72,000.
Od. $37,000.
O
Transcribed Image Text:A partnership agreement specifies that each partner is to receive 25 percent interest on their weighted average capital
balance for the year. Suppose a partner's capital account starts the year with a balance of $100,000. On April 1, $10,000 is
withdrawn. On August 1, $50,000 is invested. On November 1, $17,000 is withdrawn.
How much partnership income for the year will be allocated to the partner for interest on capital?
Select one:
O
O
a. $30.975
b. $26,475
C. $27,625
d. $28.675
D
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