jacq6jon
Apr 5, 2009, 07:02 PM
Need to understand
Gale Haley and Leah Manos formed a partnership, investing $180,000 and $60,000 respectively. Determine their participation in this year's net income of $150,000 under each of the following independent assumptions: (a) no agreement concerning division of net income; (b) divided in ratio of original capital investment; (c) interest at the rate of 10% allowed on original investments and the remainder divided in the ratio of 2:3; (d) salary allowances of $45,000 and $60,000 respectively, and the balance divided equally; (e) allowance of interest at the rate of 10% on original investments, salary allowances of $45,000 and $60,000 respectively, and the remainder divided equally.
Gale Haley and Leah Manos formed a partnership, investing $180,000 and $60,000 respectively. Determine their participation in this year's net income of $150,000 under each of the following independent assumptions: (a) no agreement concerning division of net income; (b) divided in ratio of original capital investment; (c) interest at the rate of 10% allowed on original investments and the remainder divided in the ratio of 2:3; (d) salary allowances of $45,000 and $60,000 respectively, and the balance divided equally; (e) allowance of interest at the rate of 10% on original investments, salary allowances of $45,000 and $60,000 respectively, and the remainder divided equally.