The partnership agreement of Brian, Gise, and Bosco provides for the following income ratio: (a)Brian, the managing partner, receives a salary allowance of $108000, (b) each partner receives 15%interest on average capital investment, and (c) remaining net income or loss is divided equally. Theaverage capital investments for the year were: Brian $609000, Gise $1199000, and Bosco $1810000.If partnership net income is $714000, the amount allocated to Gise should be:O $179850.O $200950.O $238000.O $158750.

Given Information: Salary allowance = $108,000Interest on average capital investment = 15%Net income…

Answered: If partnership net income is $714000,…

Business

Accounting

If partnership net income is $714000, the amount allocated to Gise should be:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...

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The partnership agreement of Brian, Gise, and Bosco provides for the following income ratio: (a)
Brian, the managing partner, receives a salary allowance of $108000, (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: Brian $609000, Gise $1199000, and Bosco $1810000.
If partnership net income is $714000, the amount allocated to Gise should be:
O $179850.
O $200950.
O $238000.
O $158750.

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