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Beau Dawson and Willow McDonald formed a partnership, investing $100,000 and $150,000, respectively. Determine their participation in the year's net income of $280,000 under
Beau Dawson and Willow McDonald formed a partnership, investing $100,000 and $150,000, respectively. Determine their participation in the year's net income of $280,000 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 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $40,000 and $46,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $46,000, respectively, and the remainder divided equally. Dawson McDonald 140,000 a. 140,000 b. $112,000 $ 168,000 C. $112,000 $ 168,000 d. $136,500 X $ 143,500 X e. 135,250 X 144,750 X
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