Question - At the beginning of the year partners Noah and Jona have capital balances in a partnership of $50,000 and $75,000 respectively. They agree to share profits and losses as follows:
Noah Jona
As salaries$25,000$27,500
As interest on capital at the beginning of the year10%10%
Remaining profits or losses50%50%
If income for the year was $62,500, what will be the distribution of income to Noah?
$28,750.
$30,000.
$25,000.
$17,500.