Problems 13-1

(1) Allocation of $280,000 of Partnership Income Annual Sales is $1,300,000

Profit and loss percentage

Salary.
Bonus of sales in Excess of $ 1,000,000
Bonus of N/I in Excess of $ 150,000 after bonus
Gain from the sale of Dep assets
Interest on weighted-avg in exceeds of $50,000
Balance
Total.

Rockford
35%
50,000

$
$
$
$
$

10,000
10,000
208
23,698
93,906

Calculation of Annual Bonus

Bonus in excess of $150,000 after bonus
Bonus= 10% (Net income-150,000)-R bonus - S bonus- T bonus
100% Bonus = 10% (130,000-R bonus - S bonus- T bonus)
100% Bonus = 13,000- 10%R bonus - 10%S bonus- 10%T bonus)
130% Bonus = 13,000
Bonus = 13,000/130%

Skeeba
25%
$
$
$
$
$
$

Tapinski
40%
40,000
15,000
10,000

$
$
2,083 $
16,927 $
84,010 $

in excess of $150,000 after bonus

0)-R bonus - S bonus- T bonus
bonus - S bonus- T bonus)
nus - 10%S bonus- 10%T bonus)
$

Cumulative
Total

10,000

55,000 $
$
10,000 $
10,000 $
- $
27,083 $
102,083 $

145,000
15,000
30,000
20,000
2,292
67,708
280,000

$
$
$
$
$
$
$

145,000
160,000
190,000
210,000
212,292
67,708
280,000

168,000

Sales
$1,300,000
Weighted-Avg
Rockford

Skeeba

52,083 $

85,833 $

Draw 15k over of

the annual salary

Tapinski

25,000