Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $65,000 and $195,000, respectively. Determine their participation in the year's net income of $275,000 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 $36,000 and $46,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $46,000, respectively, and the remainder divided equally.   Dawson McDonald a. $fill in the blank 1 $fill in the blank 2 b. $fill in the blank 3 $fill in the blank 4 c. $fill in the blank 5 $fill in the blank 6 d. $fill in the blank 7 $fill in the blank 8 e. $fill in the blank 9 $fill in the blank 10

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Dividing Partnership Income

Beau Dawson and Willow McDonald formed a partnership, investing $65,000 and $195,000, respectively.

Determine their participation in the year's net income of $275,000 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 $36,000 and $46,000, respectively, and the balance divided equally.
e. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $46,000, respectively, and the remainder divided equally.

  Dawson McDonald
a. $fill in the blank 1 $fill in the blank 2
b. $fill in the blank 3 $fill in the blank 4
c. $fill in the blank 5 $fill in the blank 6
d. $fill in the blank 7 $fill in the blank 8
e. $fill in the blank 9 $fill in the blank 10
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