Beau Dawson and Willow Macdonald formed a partnership, investing $276,000 and $92,000, respectively. Determine their participation in

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Beau Dawson and Willow Macdonald formed a partnership, investing $276,000 and $92,000, respectively. Determine their participation in the year’s net income of $380,000 under each of the following independent assumptions: 

(a) No agreement concerning division of net income;

(b) Divided in the ratio of original capital investment;  

(c) Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3; 

(d) Salary allowances of $47,000 and $59,000, respectively, and the balance divided equally;  

(e) Allowance of interest at the rate of 5% on original investments, salary allowances of $47,000 and $59,000, respectively, and the remainder divided equally.

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Accounting

ISBN: 9781337902687

28th Edition

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

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