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Dahl and Westhoff have decided to form a partnership. They have agreed that Dahl is to invest $ 4 0 0 , 0 0 0

Dahl and Westhoff have decided to form a partnership. They have agreed that Dahl is to invest $400,000 and that Westhoff is to invest $100,000. Dahl is to devote one-third time to the business, and Westhoff is to devote two The following plans for the division of income are being considered:
a. Equal division
b. In the ratio of original 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 $80,000 to Dahl and $160,000 to Westhoff, and the remainder equally
f. Plan (e), except that Westhoff is also to be allowed a bonus of $50,000 if net income exceeds $200,000
Required:
For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $300,000 and (2) net income of $750,000. Round answers to the nearest whole dollar.
Plan
(1) $300,000
(1) $300,000
(2) $750,000
(2) $750,000 Dah Westhoff Dahl Westhoff
a.
b.
c.
d.
e.
f.
$ q, Dahl
$ q, $ $
3
4 Sind
9
$
$
$
$ $
$ q,
q, $
$
$
$
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