Martinez and Lopez Are Partners in Business Named Builders' Services

question 16

Short Answer

Martinez and Lopez are partners in business named Builders' Services. For the year ended December 31, 2013, net income for Builders' Services was $60,000.
Net income or loss is allocated on the basis of the balances of the partners' capital accounts at the beginning of the year. On January 1, 2013, the balances were Martinez, $48,000, and Lopez, $24,000.
1. How much of the net income will be allocated to Martinez?
2. How much of the net income will be allocated to Lopez?

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