The Partnership Agreement of Nieto, Keller, and Pickert Provides for the Following

question 103

Multiple Choice

The partnership agreement of Nieto, Keller, and Pickert provides for the following income ratio: (a) Nieto, the managing partner, receives a salary allowance of $36,000, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Nieto $200,000, Keller $400,000, and Pickert $600,000. If partnership net income is $180,000, the amount distributed to Nieto should be:

• A) $30,000
• B) $54,000
• C) $60,000
• D) $66,000

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Definitions:

Chiropractic

A form of alternative medicine focused on the diagnosis and manipulative treatment of joint misalignments, especially those of the spinal column, which are believed to affect overall health.

Professional Status

A measure of one's standing or rank in their particular profession, often influenced by education, experience, and contributions to the field.

Mainstream Health

Conventional or widely accepted approaches and practices in medicine and healthcare endorsed by the medical community.

Alternative Healers

Practitioners who use non-conventional methods to treat illnesses or discomfort, often emphasizing holistic approaches and traditional practices.