Question
Candace Hassell and Abby Lawson formed a partnership, investing $280,000 and $140,000, respectively. Determine their participation in the year's net income of $264,000 under each
Candace Hassell and Abby Lawson formed a partnership, investing $280,000 and $140,000, respectively. Determine their participation in the year's net income of $264,000 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 15% allowed on original investments and the remainder divided in the ratio of 2:3. d.) Salary allowances of $66,000 and $90,000, respectively, and the balance divided equally.e.) Allowance of interest at the rate of 15% on original investments, salary allowances of $66,000 and $90,000, respectively, and the remainder divided equally.
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