Jones, Silva, and Thompson form a partnership and agree to allocate income equally after recognition of 10% interest on beginning capital balances and monthly salary allowances of $2,000 to Jones and...

Jones, Silva, and Thompson form a partnership and agree to allocate income equally after recognition of 10% interest on beginning capital balances and monthly salary allowances of $2,000 to Jones and $1,500 to Thompson. Capital balances on January 1 were as follows:Jones……..$40,000Silva……..25,000Thompson…..30,000Required:Calculate the net income (loss) allocation to each partner under each of the following independent situations.1. Net income for the year is $99,500.2. Net income for the year is $38,300.3. Net loss for the year is $15,100.View Solution:

Jones Silva and Thompson form a partnership and agree to