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Dividing Partnershie Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $186,000 and that Greene is

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Dividing Partnershie Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $186,000 and that Greene is to invest $62,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: a. Equal division. b. In the ratio of original investments. e. 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 $45,000 to Morrison and $75,000 to Greene, and the remainder equally f. Plan (e), except that Greene is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $160,000 and (2) net income of $245,000. Round answers to the nearest whole dollar (1) (2) $160,000 $245,000 Plan Morrison Greene Morrison Greene S b. s . Previous Check My Work 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 $45,000 to Morrison and $75,000 to Greene, and the remainder equally f. Plan (e), except that Greene is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $160,0 and (2) net income of $245,000. Round answers to the nearest whole dollar. (2) $160,000 $245,000 Plan Morrison Greene Greene Morrison a. b. d. fi

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