The Pitt and Jolie partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $32,000 for Pitt and $48,000 for Jolie and 10% interest allowance on capital balances at the beginning of the year

Accounting Nov 29, 2020

The Pitt and Jolie partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $32,000 for Pitt and $48,000 for Jolie and 10% interest allowance on capital balances at the beginning of the year. Each partner had a beginning capital balance of $80,000. If the net income for the year is $120,000, what is Pitt’s share of the net income?

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