# Accounting 102

Turner and Isham agreed to form a partnership. Turner contributed \$ 200,000 in cash, and Isham contributed assets with a fair market value of \$ 400,000. The partnership, in its initial year, reported net income of \$ 120,000. Assume that the partnership agreement states that Turner and Isham are to receive salaries of \$ 20,000 and \$ 24,000, respectively; that Turner is to receive 6 percent interest on his capital balance at the beginning of the year; and that the remainder of income and losses are to be shared equally. Calculate the distribution of the income or losses under the following conditions:
1.Income totals \$ 120,000.
2.Income totals \$ 48,000.
3.There is a loss of \$ 2,000.
4.There is a loss of \$ 40,000.

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