Dividing Partnership Income

Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $288,000 and that Greene is to invest $96,000. Morrison is to devote one-half time to the business, and Greene 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 5% on original investments and the remainder equally
5. Interest of 5% on original investments, salary allowances of $55,000 to Morrison and $85,000 to Greene, and the remainder equally
6. Plan (e), except that Greene 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 $121,000 and (2) net income of $220,000. Round answers to the nearest whole dollar.

	(1)	(2)
	$121,000	$220,000
Plan		Morrison		Greene		Morrison		Greene
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