Dividing Partnership Income

Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $297,000 and that Shannon is to invest $99,000. Black is to devote one-half time to the business, and Shannon is to devote full time. The following plans for the division of income are being considered:

1. Equal division.
2. In the ratio of original investments.
3. In the ratio of time devoted to the business.
4. Interest of 6% on original investments and the remainder equally.
5. Interest of 6% on original investments, salary allowances of $55,000 to Black and $70,000 to Shannon, and the remainder equally.
6. Plan (e), except that Shannon 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 $178,000 and (2) net income of $215,000. Round answers to the nearest whole dollar.

	(1)				(2)
	$178,000				$215,000
Plan		Black		Shannon		Black		Shannon
a.		$fill in the blank 1		$fill in the blank 2		$fill in the blank 3		$fill in the blank 4
b.		$fill in the blank 5		$fill in the blank 6		$fill in the blank 7		$fill in the blank 8
c.		$fill in the blank 9		$fill in the blank 10		$fill in the blank 11		$fill in the blank 12
d.		$fill in the blank 13		$fill in the blank 14		$fill in the blank 15		$fill in the blank 16
e.		$fill in the blank 17		$fill in the blank 18		$fill in the blank 19		$fill in the blank 20
f.		$fill in the blank 21		$fill in the blank 22		$fill in the blank 23		$fill in the blank 24