Allocating profits and losses to the partners
Bagwell, McWilliams, and Briand have capital balances of $24,000, $36,000, and $60,000, respectively. The partners share profits and losses as follows:
a. The first $50,000 is divided based on the partners' capital balances.
b. The next $50,000 is based on service, shared equally by Bagwell and Briand.
c. The remainder is divided equally.
Requirement
1. Compute each partner's share of the $112,000 net income for the year.