If Ness”s capital account is credited for $1,000 as his share of the net income in a given period,… 1 answer below »

1. Ann Keeley and Susie Norton are partners in a business they started two years ago. The partnership agreement states that Keeley should receive a salary allowance of $40,000 and that Norton should receive a $30,000 salary allowance. Any remaining income or loss is to be shared equally. Determine each partner’s share of the current year’s net income of $210,000.

2. Jake and Ness are partners who agree that Jake will receive a $60,000 salary allowance and that any remaining income or loss will be shared equally. If Ness’s capital account is credited for $1,000 as his share of the net income in a given period, how much net income did the partnership earn in that period?

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