Answer:
$1,004,000.
Explanation:
We have been given that Blake and Matthew are partners who agree that Blake will receive a $100,000 salary allowance and that any remaining income or loss will be shared equally.
Matthew’s capital account is credited for $2,000 as his share of the net income in a given period.
Since both partners will get equal part of remaining income or loss, so Blake will get $2,000 as his share of the net income.
Total net income for the period would be Blake's salary allowance plus amount shared in both persons of net income.
[tex]\text{Total net income}=\$1,000,000+\$2,000+\$2,000[/tex]
[tex]\text{Total net income}=\$1,004,000[/tex]
Therefore, the total net income of the partnership in that period would be $1,004,000.
