Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $187,500 and $62,500, respectively. Determine their participation in the year's net income of $300,000 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 $38,000 and $49,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $38,000 and $49,000, respectively, and the remainder divided equally.      Dawson      McDonald a. $                 $ b. $                 $ c. $                 $ d. $                $ e. $                $

Question

Dividing Partnership Income

Beau Dawson and Willow McDonald formed a partnership, investing $187,500 and $62,500, respectively.

Determine their participation in the year's net income of $300,000 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 $38,000 and $49,000, respectively, and the balance divided equally.
e. Allowance of interest at the rate of 5% on original investments, salary allowances of $38,000 and $49,000, respectively, and the remainder divided equally.

     Dawson      McDonald

a. $                 $

b. $                 $

c. $                 $

d. $                $

e. $                $

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