ividing Partnership Income

Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $267,000 and that Greene is to invest $89,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered:

1. Interest of 5% on original investments, salary allowances of $45,000 to Morrison and $75,000 to Greene, and the remainder equally

Required:

For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $178,000 and (2) net income of $225,000. Round answers to the nearest whole dollar.

	(1)				(2)
	$178,000				$225,000
Plan		Morrison		Greene		Morrison		Greene
a.		$89,000		$89,000		$112,500		$112,500
b.		$133,500		$44,500		$168,750		$56,250
c.		$59,333		$118,667		$75,000		$150,000
d.		$93,450		$84,550		$116,950		$108,050
e.		$??????		$??????		$101,950		$123,050
f.		$72,650		$105,350		$91,450		$133,550