Question
Beau Dawson and Willow McDonald formed a partnership, investing $70,000 and $210,000, respectively. Determine their participation in the year's net income of $107,000 under each
Beau Dawson and Willow McDonald formed a partnership, investing $70,000 and $210,000, respectively.
Determine their participation in the year's net income of $107,000 under each of the following independent assumptions:
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3.
Salary allowances of $38,000 and $46,000, respectively, and the balance divided equally.
Allowance of interest at the rate of 5% on original investments, salary allowances of $38,000 and $46,000, respectively, and the remainder divided equally.
| Dawson | McDonald | |
| a. | $fill in the blank 1 | $fill in the blank 2 |
| b. | $fill in the blank 3 | $fill in the blank 4 |
| c. | $fill in the blank 5 | $fill in the blank 6 |
| d. | $fill in the blank 7 | $fill in the blank 8 |
| e. | $fill in the blank 9 | $fill in the blank 10 |
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Accounting
Authors: Michael J. Jones
3rd Edition
1119977185, 9781119977186
