# Dividing Partnership IncomeTyler Hawes and Piper Albright formed a partnership, investing \$116,000 and \$174,000, respectively.Determine their participation in the year's net income of \$275,000 under each of the following independent assumptions:No agreement concerning division of net income.Divided in the ratio of original capital investment.Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3.Salary allowances of \$38,000 and \$49,000, respectively, and the balance divided equally.Allowance of interest at the rate of 6% on original investments, salary allowances of \$38,000 and \$49,000, respectively, and the remainder divided equally.HawesAlbright(a)\$\$(b)\$\$(c)\$\$(d)\$\$(e)\$\$

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Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing \$116,000 and \$174,000, respectively.
Determine their participation in the year's net income of \$275,000 under each of the following independent assumptions:
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3.
Salary allowances of \$38,000 and \$49,000, respectively, and the balance divided equally.
Allowance of interest at the rate of 6% on original investments, salary allowances of \$38,000 and \$49,000, respectively, and the remainder divided equally.

Hawes
Albright
(a)
\$
\$
(b)
\$
\$
(c)
\$
\$
(d)
\$
\$
(e)
\$
\$

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Step 1

The division of net income has been shown in above equation. Where the net income is divided in both partners.

Step 2

The ratio of capital investment has been shown in the above equation, the net income is divided in their share ratio of capital contribution.

Step 3

In the above equation,  the interest calculation for both partners has been sho...

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