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Zandusky invested $50,000 and Laurie invested $40,000 in a partnership and agreed to share profit and losses by allowing a $5,000 annual salary allowance to
Zandusky invested $50,000 and Laurie invested $40,000 in a partnership and agreed to share profit and losses by allowing a $5,000 annual salary allowance to Zandusky and a $6,000 annual salary allowance to Laurie. As well, each partner is to receive a share of profit equal to a 10% return on capital investments, and the balance is to be divided equally. Under this agreement, what are the shares of the partners if the partnership profit is $65,000? Show calculations
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