Question
Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $180,000 and that Greene is to invest $60,000.
Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $180,000 and that Greene is to invest $60,000. 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: Equal division. In the ratio of original investments. In the ratio of time devoted to the business. Interest of 6% on original investments and the remainder equally Interest of 6% on original investments, salary allowances of $45,000 to Morrison and $80,000 to Greene, and the remainder equally Plan (e), except that Greene 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 $154,000 and (2) net income of $220,000. Round answers to the nearest whole dollar. (1) (2) $154,000 $220,000 Plan Morrison Greene Morrison Greene a. $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 b. $fill in the blank 5 $fill in the blank 6 $fill in the blank 7 $fill in the blank 8 c. $fill in the blank 9 $fill in the blank 10 $fill in the blank 11 $fill in the blank 12 d. $fill in the blank 13 $fill in the blank 14 $fill in the blank 15 $fill in the blank 16 e. $fill in the blank 17 $fill in the blank 18 $fill in the blank 19 $fill in the blank 20 f. $fill in the blank 21 $fill in the blank 22 $fill in the blank 23 $fill in the blank 24
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