Table 12-13 Burns and Allan Have Formed a Partnership and Invested $40,000

question 47

Essay

Table 12-13
Burns and Allan have formed a partnership and invested $40,000 and $60,000, respectively. They have agreed to share profits as follows:
1) An annual allocation to Burns of $20,000 and to Allan of $10,000 based on service
2) The next $15,000 is to be allocated according to their original capital contributions to the partnership.
3) The remainder is to be allocated 5:4 respectively
-Refer to Table 12-13.Assuming that the business earns $35,000,allocate the income to Burns and Allan.

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Definitions:

Intellectual Skills

The cognitive abilities related to thinking, reasoning, problem-solving, and learning.

Motor Skills

The abilities required to control the muscles of the body for movement, including both gross and fine motor skills.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response which is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Old Stimulus

A previously encountered stimulus that may trigger a familiar response or behavior due to past experiences.