Ask Experts Questions for FREE Help !
Ask
    UnigirlBelle's Avatar
    UnigirlBelle Posts: 59, Reputation: 1
    Junior Member
    		  
    #1

    Apr 28, 2009, 10:33 AM
    Net income distibution
    I cannot figure out how to do net income distribution. They only give an example of it in my study unit but no explanation. I cannot figure out where they get any of their numbers. Can any one show me how it is done and where the numbers are derived from step by step. I hope this makes sense.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Apr 28, 2009, 10:44 PM

    What do you mean by a net income distribution? Having the context of this would be very useful. Are you meaning like the distribution to partners or something?
    UnigirlBelle's Avatar
    UnigirlBelle Posts: 59, Reputation: 1
    Junior Member
    		  
    #3

    Apr 29, 2009, 03:43 AM

    Yes, to partners. The example gives the names of the partners.
    The interest at a percentage on investment, the salary agreement then percentage of remaining income, it then gives the total share of net income. It does this with both partners then with those totals added together it gives the net income distributed.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #4

    Apr 29, 2009, 11:18 PM

    I've been desperately trying to find where I might have given an example of this to someone else, but alas...

    OK, let's say Partner A has 50,000 invested and Partner B has 100,000 invested. A gets a 30,000 salary and B gets a 50,000 salary. They divide the remainder equally. Net income is 120,000.

    OK, too hard to make columns here, so I did this in Excel. (I hope you have Excel or something that can read it.) And there's some explanation in there also. If there's something you don't understand, ask.

    Out of interest, salary allowance and splitting up the rest, the problem can give you any combination of these. Do them in the order they give them.
    Attached Files
  1. File Type: xls Partnership Income Distribution.xls (15.5 KB, 127 views)
    2. UnigirlBelle's Avatar
    UnigirlBelle Posts: 59, Reputation: 1
    Junior Member
    		  
    #5

    Apr 30, 2009, 03:52 AM

    I was able to open it with a program similar to Excel. Yes, I see where you're coming from with that example. That is was easier to follow than the one in my book, I see all your numbers, for the net income in my book example, I have no idea where they get the percentages they got out of the net income that is shown on the balance sheet. Is it okay if I print out your example and put it with my notes?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #6

    Apr 30, 2009, 11:07 PM
    Quote Originally Posted by UnigirlBelle View Post
    Is it okay if I print out your example and put it with my notes?
    Sure, not a problem. :)
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search


Check out some similar questions!

Do those income count among my taxable income?-dual status [ 4 Answers ]

Please help, I am on dual status for 2008 tax purpose. I was on H1B and left US in April, 2008. My questions are: During my non-resident period of 2008, I only received interests from US saving account and dividends from US brokerage account(some of dividends distributed in my IRA and mutual...

Collectors (law office) Garishing Income & Income Tax Refund? [ 4 Answers ]

I live in the Atlanta, GA area and I brought a house last spring. This summer I start receiving mail and phone calls from a law office regarding a credit card that was closed over 10 years ago, but I paid some money on it after that. So, it has been over 7 years,but a few month under 10 years. ...

Wealth & Income Dispersion, Income Mobility, and Economic Injustice [ 20 Answers ]

There's a lot of trash being talked here and elsewhere these days about how income and wealth are distributed among the US populace, how these distributions are changing, what is causing these changes, and whether those changes are benign or malevolent. Beyond that lie the questions of whether,...

IRA distibution for disability - Long [ 1 Answers ]

I had surgery in Feb of this year and am still out on Long term disability. My employer is not holding my Job and I will need some additional cash to be able to function on the reduced disability check. At his time my Dr is saying that I will probably be out until Feb of next year, but we just...

View more questions Search