Assume the partnership agreement for Dee

Assume the partnership agreement for Dee - the $60,000 of...

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Assume the partnership agreement for Dee's Consultants requires net income to be  allocated based on three criteria, including: salary allowances of $15,000, $12,000, and  $5,000 for Dee, Sue, and Jeanette, respectively; 10% interest on each partner's  beginning capital balance; and any remainder to be split equally. Using this information, 
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Unformatted text preview: the $60,000 of net income would be allocated $21,000 to Dee, $20,000 to Sue, and $19,000 to Jeanette. Information from the owners' capital accounts shows the following activity: Beginning Capital Balance Additional Investments During Year Withdrawals During Year Dee $ 20,000 $ 5,000 $15,000 Sue 40,000 5,000 10,000 Jeanette 100,000 10,000 5,000...
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