Question
Jones and Alex decide to create a partnership, and begin to bake and decorate cupcakes for weddings. They create a partnership agreement, whereby Jones will
Jones and Alex decide to create a partnership, and begin to bake and decorate cupcakes for weddings. They create a partnership agreement, whereby Jones will do all of the baking and Alex will do all of the decorating, and they will share in the delivery duties. Alex puts in $15,000 to the business, and Jones puts in $850. Their agreement states that "losses are to be divided as follows: Alex will contribute 20% toward any losses and Jones will contribute 80% to cover any losses. That was the extent of the agreement. A year later, they had made $200,000 in profits. According to RUPA, how should the profits be shared?
A. Jones share is 20% and Alex's share is 80%
B. Jones share is 50%, and Alex's share is 50%
C. Jones share is 80%, and Alex's share is 20%
D. Alex should get the first $15,000 in profits, and then they share 50%-50%
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