17A-1

Part. a. The partnership of Tammy and Mark began with the partners investing $3,900 and $2,700, respectively. At the end of the first year, the partnership earned net income of $7,900. Under each of the following independent situations, calculate how much of the $7,900 each is entitled to:

Part. b. In Situation 3, what would the earnings to each partner be if net income were $4,700?

Brooke, and Mclody have capital balances before and the partners share losses and gains in a 321 ratio Al with a book value of $14,000 are sold, for a gain on malaton In your cakulations, assume that no liabilities are a factoe Wh parner receive in cash in the liquidation process? ively. Cash balance in 548 noncash asrs $27 ab Problems Set A 17A-1. The partnership of Tammy and Mark began with the partmers inven $3,900 and $2,700, respectively. At the end of the first year, the pe ship earned net income of $7,900. Under each of the following inde pendent situations, calculate how mach of the $7,900 each is enied Situation 1: No agreement on how income was to be shared Situatio" 2; Tammy and Mark share income based on the logan Sitmation 3: Salary allowance of $2,810 to Tammy and $2,410 to Mark of-year investment ratio Ten percent interest on beginning year's investment. In Situation 3, what would the earnings to each partner be if net inm were $4,700