Dividing Partnership Income

Beau Dawson and Willow McDonald formed a partnership, investing $108,000 and $162,000, respectively.

Determine their participation in the year's net income of $290,000 under each of the following independent assumptions:

a. No agreement concerning division of net income.
b. Divided in the ratio of original capital investment.
c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3.
d. Salary allowances of $36,000 and $48,000, respectively, and the balance divided equally.
e. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $48,000, respectively, and the remainder divided equally.

	Dawson	McDonald
a.	$fill in the blank 1	$fill in the blank 2
b.	$fill in the blank 3	$fill in the blank 4
c.	$fill in the blank 5	$fill in the blank 6
d.	$fill in the blank 7	$fill in the blank 8
e.	$fill in the blank 9	$fill in the blank 10