Question
Dividing Partnership Income Candace Hassell and Abby Lawson formed a partnership, investing $480,000 and $240,000, respectively. Determine their participation in the year's net income of
Dividing Partnership Income
Candace Hassell and Abby Lawson formed a partnership, investing $480,000 and $240,000, respectively.
Determine their participation in the year's net income of $342,000, under each of the following independent assumptions.
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 12% allowed on original investments and the remainder divided in the ratio of 2:3.
Salary allowances of $113,000 and $157,000, respectively, and the balance divided equally.
Allowance of interest at the rate of 12% on original investments, salary allowances of $113,000 and $157,000, respectively, and the remainder divided equally.
Hassell | Lawson | |
(a) | $ | $ |
(b) | $ | $ |
(c) | $ | $ |
(d) | $ | $ |
(e) | $ | $ |
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