7. Ainsley & Burton LLP admitted Paul Craig to a one-third interest in the firm for his investment of $50,000. Does this mean that Craig would be entitled to one-third of the partnership’s net income or losses?

v8. Duncan and Eastwick are negotiating a partnership contract, with Duncan to invest

$60,000 and Eastwick $20,000 in the limited liability partnership. Duncan suggests that interest at 8% be allowed on average capital account balances and that any remaining net income or losses be divided in the ratio of average capital account balances.

Eastwick prefers that the entire net income or losses be divided in the ratio of average capital account balances. Comment on these proposals.