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WILL UPVOTE HELP ASAP Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $288,000 and that Greene
WILL UPVOTE HELP ASAP
Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $288,000 and that Greene is to invest $96,000. Morrison is to devote one-half time to the business, and Greene is to devote full 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 6% on original investments and the remainder equally e. Interest of 6% on original investments, salary allowances of $40,000 to Morrison and $80,000 to Greene, and the remainder equally f. Plan (e), except that Greene is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total sallowances Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $172,000 and (2) net income of $260,000. Round answers to the nearest whole dollarStep by Step Solution
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