Net Income for Costmore Sales for the Year Ended December

question 64

Short Answer

Net income for Costmore Sales for the year ended December 31, 2013, was $32,000.The partners, Johnson and Lindstrom, share profits in the ratio of 60 and 40 percent, respectively. The balance in Johnson's capital account is $60,000. The balance in Lindstrom's capital account is $60,000.
1. How much of the net income will be allocated to Johnson?
2. How much of the net income will be allocated to Lindstrom?

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