Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1. Spurlock invested $80,000 and Wilson invested $20,000. For the fiscal year ended June 30, 20-2, a net income of $78,000 was earned. Determine the amount of net income that Spurlock and Wilson would receive under each of the following independent assumptions: Income to be allocated $ 78,000 Spurlock Wilson Total

1. There is no agreement concerning the distribution of net income.

2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally.

3. Spurlock and Wilson are to receive a salary allowance of $37,000 and $25,000, respectively. The remaining net income is to be divided equally.

4. Each partner is to receive 10% interest on their original investment. Spurlock and Wilson are to receive a salary allowance of $37,000 and $25,000, respectively. The remaining net income is to be divided as follows: Spurlock, 75% and Wilson, 25%. Feedback