Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $216,000 and that Shannon is to invest $72,000. Black is to devote one-half time to business, and Shannon is to devote full time. The following plans for the division are being considered:

a. Equal division

b. In the ratio of equal investments

c. In the ratio of time devoted to the business

d. Interest of 5% on original investments and the remainder equally

e. Interest of 5% on original investments, salary allowances of $50,000 to Black and $70,000 to Shannon, and the remainder equally

f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances.

For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $154,000 and (2) net income of $225,000