RECOMMENDED!!ACC 436-Allocation of Income or Loss-Jones, Silva, and Thompson

  

Allocation of Income or LossJones, Silva, and Thompson form a partnership and agree to allocate income equally after recognition of 10% interest on beginning capital balances and monthly salary allowances of $2,000 to Jones and $1,500 to Thompson. Capital balances on January 1 were as follows:Jones………$40,000Silva……….$25,000Thompson………$30,000REQUIRED:Calculate the net income (loss) allocation to each partner under each of the following independent situations.1. Net income for the year is 99,5002. Net income for the year is 38,3003. Net income for the year is 15,100

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