A partnership agreement provides that half of the annual profit distributed in proportion to each partner's investment in the partnership, and that the other half be distributed in proportion to the total number of hours that each partner worked in the business during the year. How much should recent year's profit of $85,580 be allocated if the amounts invested by Huey, Dewey, and Louie are $80,000, $45,000, and $60,000, and their hours of work for the year were 465, 1,760, and 1520, respectively.

A partnership agreement provides that half of the annual profit distributed in proportion to each partner's investment in the partnership, and that the other half be distributed in proportion to the total number of hours that each partner worked in the business during the year. How much should recent year's profit of $85,580 be allocated if the amounts invested by Huey, Dewey, and Louie are $80,000, $45,000, and $60,000, and their hours of work for the year were 465, 1,760, and 1520, respectively.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 7BCRQ

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