Dividing Partnership Income Dylan Howell and Demond Nickles have decided to form a partnership. They have agreed that Honell is to invest $50,000 and that Nickles is to invest $75,000. Howell is to devote full time to the business, and Nickles 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 $38,000 to Howell and $19,000 to Nickles, and the remainder equally f. Plan (e), except that Howel 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 $420,000 and (2) net income of $150,000 (2) $420,000 $150,000 Plan Howell Nickles Howell Nickles 210,000 75,000 75,000 252,000 60,000 90,000 210,000 168,000 * 280,000 249.500 140,000 100,000 50,000 87.500 62.500 170,500 218,250 83,250 66,750 358,900 Check My Work Set up a column for each partner for each net income assumption Allocate income to the partners based on the income sharing agreement, any b. Allocate income to the partners based on the partners original investments Alcate income to the partners based the ratio of time devoted to the business d. Apply the interest allowance to the partners first. The locate the remaining income in the ratio of 32 Apply salary and interest allowances first. Then slocate the remaining income oss equally Apply salary, trest, and bonus slowances frot. Then locate the remaining incomo los equally. Determine the bonus based on a comer