Durango and Verde Formed a Partnership with Capital Contributions of $150,000

question 65

Essay

Durango and Verde formed a partnership with capital contributions of $150,000 and $190,000,respectively.Their partnership agreement called for Durango to receive a $50,000 annual salary allowance.They also agreed to allow each partner a share of income equal to a 10% of their initial capital investments.The remaining income or loss is to be divided equally.If the net income for the current year is $120,000,what are Durango's and Verde's respective shares?

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Definitions:

Ultimate Consumer

The end-user or actual buyer who uses or consumes a product or service for personal use, not for resale.

Broker

A person or firm that acts as an intermediary between buyers and sellers, usually for a fee or commission.

Business Consultants

Professionals who provide expert advice in a particular area of business, such as management, operations, or marketing, to help organizations improve performance.

Index

A statistical measure or indicator often used in finance to represent the performance of a group of assets or a sector of the market.