Chuck,Ron,and Wayne Are Partners in the Zieman Dance Hall Company

question 45

Essay

Chuck,Ron,and Wayne are partners in the Zieman Dance Hall Company with the following balances in their capital balances.
Chuck $120,000 Ron $70,000 Wayne $40,000
Their partnership agreement has the following provision for the division of income and losses.
Each partner to receive 10% of their capital balance.
Wayne has a salary allowance of $50,000
Any residual is to be divided on a 5:3:2 basis
Calculate how the following income and loss amounts would be divided among the parters:
A.$70,000 of net income
B.$15,000 net loss

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Definitions:

Pituitary Dwarfism

A condition characterized by abnormally short stature caused by insufficient production of growth hormone by the pituitary gland.

Hyposecretion

Abnormally reduced output of a secreted material. Compare with hypersecretion.

Growth Hormone

A hormone produced by the pituitary gland that stimulates growth, cell reproduction, and cell regeneration in humans and other animals.

Thyroxine

A substance created by the thyroid gland responsible for controlling metabolism, the production of energy, and the processes of growth and development.