Dallas and Weiss formed a partnership to manage rental properties, by investing $138,000 and $162,000, respectively. During its first year, the partnership recorded profit of $413,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit. b. The partners agreed to share profits and losses in proportion to their initial investments. c. The partners agreed to share profit by allowing a $145,000 per year salary allowance to Dallas, an $75,000 per year salary allowance to Weiss, 12% interest on their initial investments, and sharing the balance equally. (Leave no cell blank. Enter "0" when the answer is zero.)
Dallas and Weiss formed a
Required:
Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing
a. The partners failed to agree on a method of sharing profit.
b. The partners agreed to share profits and losses in proportion to their initial investments.
c. The partners agreed to share profit by allowing a $145,000 per year salary allowance to Dallas, an $75,000 per year salary allowance to Weiss, 12% interest on their initial investments, and sharing the balance equally. (Leave no cell blank. Enter "0" when the answer is zero.)
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
