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:

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 2:3.
4. Salary allowances of $40,000 and $48,000, respectively, and the balance divided equally.
5. 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