Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $108,000 and $162,000, respectively. Determine their participation in the year's net income of $106,000 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 2:2. d. Salary allowances of $36,000 and $49,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $49,000, respectively, and the remainder divided equally. Albright (a) (b) (c) (d) (e) $ $ $ Hawes
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $108,000 and $162,000, respectively. Determine their participation in the year's net income of $106,000 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 2:2. d. Salary allowances of $36,000 and $49,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $49,000, respectively, and the remainder divided equally. Albright (a) (b) (c) (d) (e) $ $ $ Hawes
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing $108,000 and $162,000, respectively.
Determine their participation in the year's net income of $106,000 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 2:2.
d. Salary allowances of $36,000 and $49,000, respectively, and the balance divided equally.
e. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $49,000, respectively, and the remainder divided equally.
Albright
(a)
(b)
(c)
(d)
(e)
$
$
Hawes
$
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