12-3

Dividing Partnership Income

Tyler Hawes and Piper Albright formed a partnership, investing $315,000 and $105,000, respectively.

Determine their participation in the year's net income of $378,000 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 $66,000 and $90,000, respectively, and the balance divided equally.

(E) Allowance of interest at the rate of 15% on original investments, salary allowances of $66,000 and $90,000, respectively, and the remainder divided equally.

Hawes Albright

a _____ ______

b _____ ______

c _____ ______

d ______ _______

e ______ _______