Question
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $187,500 and $62,500, respectively. Determine their participation in the year's net income of
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing $187,500 and $62,500, respectively.
Determine their participation in the year's net income of $285,000 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 $48,000, respectively, and the balance divided equally.
- Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $48,000, respectively, and the remainder divided equally.
| Hawes | Albright | |
| (a) | $fill in the blank 1 | $fill in the blank 2 |
| (b) | $fill in the blank 3 | $fill in the blank 4 |
| (c) | $fill in the blank 5 | $fill in the blank 6 |
| (d) | $fill in the blank 7 | $fill in the blank 8 |
| (e) | $fill in the blank 9 | $fill in the blank 10 |
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
