Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $222,000 and that Greene is to invest $74,000. 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: a. Equal division. b. In the ratio of original investments. c. In the ratio of time devoted to the business. d. Interest of 5% on original investments and the remainder equally e. Interest of 5% on original investments, salary allowances of $50,000 to Morrison and $85,000 to Greene, and the remainder equally f. 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 $178,000 and (2) net income of $245,000. Round answers to the nearest whole dollar. (1) (2) $178,000 $ 245,000 Plan Morrison Greene Morrison Greene 89,000 89,000 122,500 122,500 133,500 44,500 92,700 50,383 22,700 v 47,000 118,687 85,300 74,600 x d. - 85,300 7 C 47,000 x 74,600 32,900 x 74,600 x