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Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $ 3 0 0 , 0 0 0
Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $ and that Greene is to invest
$ Morrison is to devote onehalf time to the business, and Greene 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 on original investments and the remainder equally
e Interest of on original investments, salary allowances of $ to Morrison and $ to Greene, and the remainder equally
f Plan e except that Greene is also to be allowed a bonus equal to 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: net income of $ and net income
of $ Round answers to the nearest whole dollar.
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