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Partnership Agreement Assignment

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February 19th, 2020

At the beginning of the year, Barry's capital was $100,000 and Tanya's was $60,000. Their partnership agreement provides:

(1) annual salary allowances of $60,000 to Barry and $50,000 to Tanya, (2) annual interest allowances of 10% of a partner's beginning-year capital balance, and (3) Barry and Tanya equally share any remaining balance of income or loss. Question 1 of 2 Assuming the partnership has a net income of $120,000 the allocation should be: $60,000 to Barry and $50,000 to Tanya. $70,000 to Barry and $56,000 to Tanya. $66,000 to Barry and $54,000 to Tanya. O $60,000 to Barry and $60,000 to Tanya. $67,000 to Barry and $53,000 to Tanya. .

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