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I would love some help with the two I have wrong! Dividing Partnership Income Black and Shannon have decided to form a partnership. They have
I would love some help with the two I have wrong!
Dividing Partnership Income Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $360,000 and that Shannon is to invest $120,000. Black is to devote one-half time to the business, and Shannon 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 6% on original investments and the remainder equally e. Interest of 6% on original investments, salary allowances of $96,000 to Black and $168,000 to Shannon, and the remainder equally f. Plan (e), except that Shannon 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 $276,000 and (2) net income of $480,000. Round answers to the nearest whole dollar. (1) (2) $480,000 $276,000 Plan Black Shannon Black Shannon a. 138,000 138,000 240,000 240,000 120,000 b b. $ 207,000 69,000 $360,000 C. 92,000 184,000 $ 160,000 $ 320,000 d. $ 145,200 130,800 $ 247,200 $ 232,800 e. $ 109,200 166,800 $ 211,200 $ 268,800 f. $ 109,080 x 166,920 X $ 189,600 290,400Step by Step Solution
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