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Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively. Determine their participation in the year's net income of $110,000 under each
Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively.
Determine their participation in the year's net income of $110,000 under each of the following independent assumptions:
- No agreement concerning division of net income.
- Divided in the ratio of original capital investment.
- Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:2.
- Salary allowances of $36,000 and $50,000, respectively, and the balance divided equally.
- Allowance of interest at the rate of 6% on original investments, salary allowances of $36,000 and $50,000, respectively, and the remainder divided equally.
Hawes | Albright | |
(a) | $ | $ |
(b) | $ | $ |
(c) | $ | $ |
(d) | $ | $ |
(e) | $ | $ |
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