Question
David and May began a partnership by investing $28,000 and $20,000 in cash, respectively, and during its first year the partnership earned a profit of
David and May began a partnership by investing $28,000 and $20,000 in cash, respectively, and during its first year the partnership earned a profit of $42,000. David spends twice as much time running the business as does his partner.
What would be the share of each partner in the $42,000 profit if the partners had agreed to share it based only on the ratio of their beginning investments?
a. Davids share, $21,000; Mays share, $21,000.
b. Davids share, $42,000; Mays share, $0.
c. Davids share, $21,400; Mays share, $20,600.
d. Davids share, $24,500; Mays share, $17,500.
e. Davids share, $20,600; Mays share, $21,400.
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