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Beau Dawson and Willow McDonald formed a partnership, investing $60,000 and $180,000, respectively. Determine their participation in the year's net income of $300,000 under
Beau Dawson and Willow McDonald formed a partnership, investing $60,000 and $180,000, respectively. Determine their participation in the year's net income of $300,000 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 $34,000 and $50,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $34,000 and $50,000, respectively, and the remainder divided equally Dawson 150,000 McDonald 150,000 b. 60,000 x 180,000 X C. d. e.
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