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Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, re- spectively. Determine their participation in the year's net income of $290,000 under
Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, re-
spectively. Determine their participation in the year's net income of $290,000 under each of
the following independent assumptions: (a) no agreement concerning division of net
income; (b) divided in the ratio of original capital investment; (c) interest at the rate of 5%
allowed on original investments and the remainder divided in the ratio of 2:3; (d) salary
allowances of $36,000 and $45,000, respectively, and the balance divided equally; (e)
allowance of interest at the rate of 5% on original investments, salary allowances of
$36,000 and $45,000, respectively, and the remainder divided equally.
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