A partnership is formed by Robert investing $150 000 and Linda investing $100 000. The partners are

Question:

A partnership is formed by Robert investing $150 000 and Linda investing $100 000. The partners are considering the following plans for dividing profits and losses:

(a) According to the ratio of their original investment

(b) Paying Robert a salary of $60 000 and Linda a salary of $50 000 and the balance on the basis of their original investment

(d) Share the profits equally.

Required

A. Determine the division of the profit or loss assuming a profit of $200000.

B. Determine the division of the profit or loss assuming a profit of $150000.

C. Determine the division of the profit or loss assuming a loss of $10000.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...

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