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1. For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $276,000 and (2) net income of $480,000. Present the data in tabular form, using the following columnar headings: $276,000

1. For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $276,000 and (2) net income of $480,000. Present the data in tabular form, using the following columnar headings: $276,000

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 12.1BPR
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Instructions 1. For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $276,000 and (2) net income of $480,000. Present the data in tabular form, using the following columnar headings: Plan Black $276,000
Transcribed Image Text:Instructions 1. For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $276,000 and (2) net income of $480,000. Present the data in tabular form, using the following columnar headings: Plan Black $276,000
PR 12-2A Dividing partnership income OBJ. 2 Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $360,000 and that Shannon is to invest $120,000. Black is to devote one-half time to the business, and Shannon is to devote full time. The following plans for the division of income are being considered: 1. Equal division 2. In the ratio of original investments 3. In the ratio of time devoted to the business 4. Interest of 6% on original investments and the remainder equally 5. Interest of 6% on original investments, salary allowances of $96,000 to Black and $168,000 to Shannon, and the remainder equally 6. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances
Transcribed Image Text:PR 12-2A Dividing partnership income OBJ. 2 Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $360,000 and that Shannon is to invest $120,000. Black is to devote one-half time to the business, and Shannon is to devote full time. The following plans for the division of income are being considered: 1. Equal division 2. In the ratio of original investments 3. In the ratio of time devoted to the business 4. Interest of 6% on original investments and the remainder equally 5. Interest of 6% on original investments, salary allowances of $96,000 to Black and $168,000 to Shannon, and the remainder equally 6. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances
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