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)$$

Question

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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