Chapter 12 Accounting for Partnerships and Limited Liability companies Cancello obtained appraised values for the land and equipment as follows : An analysis of the accounts receivable indicated that the allowance for doubtful aces Nicole Murphy and Ashley Drake formed a partnership , investing $ 270,000 and $ 90 $ respectively . Determine their participation in the year's net income of $ 350,000 und each of the following independent assumptions : ( a ) no agreement concerning dinise of net income ; ( b ) divided in the ratio of original capital investment ; c ) interest 2 $275,000 30,500 Land Equipment should be increased to $8,500. Journalize the partnership's entry for Carcello's investment. EX 12-3 Dividing partnership income $2,500 cate of 5% allowed on original investments and the remainder divided in the ratio of salary allowances of $40,000 and $50,000, respectively, and the balance divided eq (e) allowance of interest at the rate of 5% on original investments, salary allowan $40,000 and $50,000, respectively, and the remainder divided equally. EX 12-4 Dividing partnership income Determine the income participation of Murphy and Drake, according to each