cadenm81
cadenm81
27.06.2021 • 
Business

Two partners, Small and Big, form a partnership in which Small invested $40,000 and Big invested $60,000 for a total capital of $100,000. But Small devotes more time to the business and earns more from the firm. They have agreed to share the profits as follows: The first $20,000 is allocated on the partner’s capital balances.
The next $30,000 is allocated based on service: Small gets $20,000, and Big gets $10,000.
Any remaining profits are allocated equally.
The partnership’s net income is $100,000.
What is Small’s portion of the net income? What is Big’s portion of the net income? Make the entry for this allocation.

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