Dividing partnership incomeMorrison and Greene have decided to form a partnership. They haveagreed that Morrison is to invest $150,000 and that Greene is to invest$50,000. Morrison is to devote one-half time to the business, and Greeneis to devote full time. The following plans for the division of income arebeing considered: a. Equal divisionb. In the ratio of original investmentsc. In the ratio of time devoted to the businessd. Interest of 6% on original investments and the remainderequally e. Interest of 6% on original investments, salary allowances of$40,000 to Morrison and $70,000 to Greene, and the remainderequallyf. Plan (e), except that Greene is also to be allowed a bonus equal to20% of the amount by which net income exceeds the total salaryallowances InstructionsFor each plan, determine the division of the net income under each ofthe following assumptions: (1) net income of $115,000 and (2) netincome of $200,000. Present the data in tabular form, using the followingcolumnar headings $115,000 $200,000 Plan Morrison Greene Morrison Greene
Dividing
Morrison and Greene have decided to form a partnership. They have
agreed that Morrison is to invest $150,000 and that Greene is to invest
$50,000. Morrison is to devote one-half time to the business, and Greene
is to devote full time. The following plans for the division of income are
being considered:
a. Equal division
b. In the ratio of original investments
c. In the ratio of time devoted to the business
d. Interest of 6% on original investments and the remainder
equally
e. Interest of 6% on original investments, salary allowances of
$40,000 to Morrison and $70,000 to Greene, and the remainder
equally
f. Plan (e), except that Greene is also to be allowed a bonus equal to
20% of the amount by which net income exceeds the total salary
allowances
Instructions
For each plan, determine the division of the net income under each of
the following assumptions: (1) net income of $115,000 and (2) net
income of $200,000. Present the data in tabular form, using the following
columnar headings
| $115,000 | $200,000 | |||
| Plan | Morrison | Greene | Morrison | Greene |
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