## (Solved) uuluuul I- wuu,uuu 7 wuu,uuu 7 w;u,uuu â€” 7 uu..:,uuu, w;u,uuu 7 LU [u] â€œ31Â¢â€:qu â€” DLL'UUU 71. The partnership agreement of Alix, Gise, and...

uuluuul I- wuu,uuu 7 wuu,uuu 7 w;u,uuu â€” 7 uu..:,uuu, w;u,uuu 7 LU [u] â€œ31Â¢â€:qu â€” DLL'UUU 71. The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix, the managing partner, receives a salary allowance of \$108,000, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Alix \$600,000, Gise \$1,200,000, and Bosco \$1,800,000. If partnership net income is \$720,000, the amount distributed to Gise should be: a. \$180,000. b. \$186,000. c. \$204,000. d. \$240,000. Ans: C, LO: 3, Bloom: AP, Difficulty. Medium, Min: 3, AACSB: Analysis, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA Solution: \$720,000 â€” \$108,000 â€” (.15) (\$600,000 + \$1,200,000 + \$1,800,000) = \$72,000; (.15) (\$1,200,000) + (72,000 / 3) = \$204,000
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