Compute each partner share in the business


Response to the following problem:

Lawson, Martinez, and Norris have capital balances of $20,000, $30,000, and $50,000, respectively. The partners share profits and losses as follows:

a. The first $40,000 is divided based on the partners' capital balances.

b. The next $40,000 is based on service, equally shared by Lawson and Edwards.

c. The remainder is divided equally.

Compute each partner's share of the business's $110,000 net income for the year.

 

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Accounting Basics: Compute each partner share in the business
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