Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $67,500 and $202,500, respectively. Determine their participation in the year's net income of $290,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $40,000 and $48,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $48,000, respectively, and the remainder divided equally. Dawson McDonald а. $ b. $ C. 2$ $ d. $ е. $
Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $67,500 and $202,500, respectively. Determine their participation in the year's net income of $290,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $40,000 and $48,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $48,000, respectively, and the remainder divided equally. Dawson McDonald а. $ b. $ C. 2$ $ d. $ е. $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I only need help with parts D and E, please.
![Dividing Partnership Income
Beau Dawson and Willow McDonald formed a partnership, investing $67,500 and $202,500, respectively.
Determine their participation in the year's net income of $290,000 under each of the following independent assumptions:
a. No agreement concerning division of net income.
b. Divided in the ratio of original capital investment.
c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3.
d. Salary allowances of $40,000 and $48,000, respectively, and the balance divided equally.
e. Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $48,000, respectively, and the remainder divided equally.
Dawson
McDonald
a.
b.
$
$
C.
$
$4
d.
2$
2$
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F785b7add-d082-4ae4-ae6c-04f403773bba%2F31daf087-bc74-4ee3-8036-0e325e5206a0%2Fwglxmjr_processed.png&w=3840&q=75)
Transcribed Image Text:Dividing Partnership Income
Beau Dawson and Willow McDonald formed a partnership, investing $67,500 and $202,500, respectively.
Determine their participation in the year's net income of $290,000 under each of the following independent assumptions:
a. No agreement concerning division of net income.
b. Divided in the ratio of original capital investment.
c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3.
d. Salary allowances of $40,000 and $48,000, respectively, and the balance divided equally.
e. Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $48,000, respectively, and the remainder divided equally.
Dawson
McDonald
a.
b.
$
$
C.
$
$4
d.
2$
2$
%24
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