The resultant net income or loss after partners


The partnership contract for Pyle & Quan LLP provided that Pyle was to receive a salary of $12,000 a year, Quan was to receive a salary of $15,000 a year, and the resultant net income or loss after partners' salaries expense was to be divided 60% to Pyle and 40% to Quan. A partnership income of $20,000 before partners' salaries expense for the fiscal year ended May 31, 2006, is allocated:

  • $12,000 to Pyle and $8,000 to Quan
  • $8,889 to Pyle and $11,111 to Quan
  • $7,800 to Pyle and $12,200 to Quan

In some other amounts.

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Accounting Basics: The resultant net income or loss after partners
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