Dividing Partnership Income

Carmelo Fernandez and Bobby Morett formed a partnership, investing $$72,500$ and $$217,500,$ respectively.

Determine their participation in the year's net income of $$92,000$ 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 $6\%$ allowed on original investments and the remainder divided in the ratio of $2$:$3.$

d$.$ Salary allowances of $$40,000$ and $$47,000,$ respectively, and the balance divided equally.

e$.$ Allowance of interest at the rate of $6\%$ on original investments, salary allowances of $$40,000$ and $$47,000,$ respectively, and the remainder divided equally.

Fernandez

Morett

a$.$

b$.$

c$.$

d$.$

e$.$ $

$

$

$

$

$

$

$

$

$

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Set up a column for each partner and a total column.