Dividing Partnership Income

Beau Dawson and Willow McDonald formed a partnership, investing $202,500 and $67,500, respectively.

Determine their participation in the year's net income of $110,000 under each of the following independent assumptions:

1. No agreement concerning division of net income.
2. Divided in the ratio of original capital investment.
3. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3.
4. Salary allowances of $34,000 and $49,000, respectively, and the balance divided equally.
5. Allowance of interest at the rate of 5% on original investments, salary allowances of $34,000 and $49,000, 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