Han Lee and Monica Andrews formed a partnership, dividing income as follows:1. Annual salary allowance to Lee of $32,000.2. Interest of 4% on each partner’s capital balance on January 1.3. Any...

Han Lee and Monica Andrews formed a partnership, dividing income as follows: 1. Annual salary allowance to Lee of $32,000. 2. Interest of 4% on each partner’s capital balance on January 1. 3. Any remaining net income divided to Lee and Andrews, 2:1. Lee and Andrews had $80,000 and $150,000, respectively, in their January 1 capital balances. Net income for the year was $64,000. How much net income should be distributed to Lee and Andrews? View Solution:

Han Lee and Monica Andrews formed a partnership dividing income