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Question
Luke and John share income and losses in a 2:1 ratio (2/3 to Luke and 1/3 to John) after allowing for salaries of $48,000 to Luke and $60,000 to John. Net income for the partnership is $93,000. Income should be divided as
a. Luke, $46,500; John, $46,500
b. Luke, $55,000; John, $38,000
c. Luke, $65,000; John, $28,000
d. Luke, $38,000; John, $55,000
Answer
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