Required:

For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $414,000 and (2) net income of $182,100.

	(1)				(2)
	$414,000				$182,100
Plan		Drury		Wilkins		Drury		Wilkins
a.	$		$		$		$
b.	$		$		$		$
c.	$		$		$		$
d.	$		$		$		$
e.	$		$		$		$
f.	$		$		$		$

Dividing Partnership Income

Desmond Drury and Ty Wilkins have decided to form a partnership. They have agreed that Drury is to invest $41,400 and that Wilkins is to invest $96,600. Drury is to devote full time to the business, and Wilkins is to devote one-half 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 10% on original investments and the remainder in the ratio of 3:2.

E) Interest of 10% on original investments, salary allowances of $93,800 to Drury and $46,900 to Wilkins, and the remainder equally.

F) Plan (e), except that Wilkins is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances.