=+EX 12-2 Record partner’s original investment obj. 2 560 Chapter 12 Accounting for Partnerships and Limited Liability Companies Chapter 12 Accounting for Partnerships and Limited Liability Companies 561 Candace Hassell and Abby Lawson formed a partnership, investing $240,000 and

$80,000, respectively. Determine their participation in the year’s net income of $200,000 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 15% allowed on original investments and the remainder divided in the ratio of 2:3;

(d) salary allowances of $50,000 and $70,000, respectively, and the balance divided equally;

(e) allowance of interest at the rate of 15% on original investments, salary allowances of $50,000 and $70,000, respectively, and the remainder divided equally.