Dividing Partnership Income

Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively.

Determine their participation in the year's net income of $110,000 under each of the following independent assumptions:

1. No agreement concerning division of net income.
2. Divided in the ratio of original capital investment.
3. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:2.
4. Salary allowances of $34,000 and $47,000, respectively, and the balance divided equally.
5. Allowance of interest at the rate of 5% on original investments, salary allowances of $34,000 and $47,000, respectively, and the remainder divided equally.