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Tyler Hawes and Piper Albright formed a partnership, investing $65,000 and $195,000, respectively. Determine their participation in the year's net income of $285,000 under each
Tyler Hawes and Piper Albright formed a partnership, investing $65,000 and $195,000, respectively.
Determine their participation in the year's net income of $285,000 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 2:3.
- Salary allowances of $38,000 and $47,000, respectively, and the balance divided equally.
- Allowance of interest at the rate of 6% on original investments, salary allowances of $38,000 and $47,000, respectively, and the remainder divided equally.
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