Dividing Partnership Income

Nicole Murphy and Ashley Drake formed a partnership, investing $270,000 and $90,000, respectively.

Determine their participation in the year's net income of $350,000 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 5% allowed on original investments and the remainder divided in the ratio of 2:3.

Salary allowances of $40,000 and $50,000, respectively, and the balance divided equally.

Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $50,000, respectively, and the remainder divided equally.

Set up a column for each partner and a total column. a. Determine the distribution of income and losses in the absence of a partnership agreement. b. Use the ratio of the partner