Problem 3

X and Y invest $100,000 and $50,000 respectively in a partnership and agree to a division of net income that provides for an allowance of interest at 10% on original investments, salary allowances of $24,000 and $12,000 respectively, with the remainder divided at a 2:1 ratio. Show all computations. What would be X's & Ys share of the following net income:

1. $60,000
2. $50,000