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please help Stephanie Banes and Layla Taylor formed a partnership, Design Pros Imaging, last May. Each person contributed assets to the business and both partners
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Stephanie Banes and Layla Taylor formed a partnership, Design Pros Imaging, last May. Each person contributed assets to the business and both partners work fulil-time in the business. The business made a profit in the first year, which ended Dec. 31, but Layla and Stephanie are stilldiscussing how to divide the net income equitably. The following table shows some options that their accountant worked up. Partner Option Taylor Barnes A. $27,840 $41,760 B. $46,400 $23,200 C. $6,600 $9,300 32,220 21,480 Design Pros Imaging C. $6,600 $9,300 32,220 21,480 $38,820 $30,780 D. $32,000 $28,000 6,600 9,300 1,575-4,725 $37,025 $32,575 E. $32,000 $28,000 1,440 4,080 4,080 $36,080 $33,520 Mastery Problem: Accounting Tol P Design Pros Imaging Dividing Design Pros Imaging E. $32,000 $28,000 1,440 4,080 4,080 $36,080 $33,520 F. $34,800 $34,800 G. $6,600 $9,300 10,440 10,815 32,445 $27,855 $41,745 Unfortunately, the accountant's notes about each option have been lost. Stephanie remembers that the accountant proposed paying 4% interest yearly on each partner's capital investment at the beginning of the year. Laya asked the accountant to Inctude at least one bonus option. The accountant used last year's results to show how the net income wouild have been divided under each option Barnes Taylor 1. What is each partner's capital investment? 2. What is each partner's proposed salary amount? 3 What was the net income for Design Pros Imaging last year? S 4 Which option shows how the net income will be spiltif the partners do not reach an agreement? 5. In Option D, what do the negative amounts represent? 6. What is the last item in Option E that is divided between the partners Step by Step Solution
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