BUS 208 - Principles of Accounting II Homework Assignment 1 Chapter 12 Karen Smith and Abby Jones formed a partnership, investing $250,000 and $125,000, respectively. Determine their participation in the year's net income of $420,000 under each of the following independent assumptions. Please show your calculations. a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 4% allowed on original investments and the remainder divided in the ratio of 4:1 d. Salary allowances of $50,000 and $60,000, respectively, and the remainder divided equally e. Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $80,000 respectively and the remainder divided equally. Show your work