Question:
Ray Davies and Dave Davies formed a partnership, investing $750,000 and $220,000 respectively. The partnership agreement calls for a return of 6% interest on their original investment, Ray is to have a salary of $80,000 per year, Dave is to have a salary of $120,000 and the remainder divided in the ratio of 2:
1. Determine the income distribution if the net income of the partnership for the year is $650,000.