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Question
Tanner and Teresa share income and losses in a 2:1 ratio (2/3 to Tanner and 1/3 to Teresa) after allowing for salaries of $42,000 to Tanner and $60,000 to Teresa. Net income of the partnership is $132,000. How should income be divided for Tanner and Teresa?
a. Tanner, $57,000; Teresa, $75,000
b. Tanner, $58,000; Teresa, $74,000
c. Tanner, $75,000; Teresa, $57,000
d. Tanner, $62,000; Teresa, $70,000
Answer
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