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Question: The partnership agreement of Jones, King, and


The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business’s profit or loss in the following sequence:
∙ Jones, the managing partner, receives a bonus equal to 20 percent of the business’s profit.
∙ Each partner receives 15 percent interest on average capital investment.
∙ Any residual profit or loss is divided equally.
The average capital investments for 2021 were as follows:



The partnership agreement of Jones, King, and Lane provides for -1

The partnership earned $90,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners.

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