Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $195,000 and $65,000, respectively. Determine their participation in the year's net income of $295,000 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 $40,000 and $50,000, respectively, and the balance divided equally. Allowance of interest at the rate of 6% on original investments, salary allowances of $40,000 and $50,000, respectively, and the remainder divided equally.   Hawes Albright (a) $ $ (b) $ $ (c) $ $ (d) $ $ (e) $ $

Question

Dividing Partnership Income

Tyler Hawes and Piper Albright formed a partnership, investing $195,000 and $65,000, respectively.

Determine their participation in the year's net income of $295,000 under each of the following independent assumptions:

  1. No agreement concerning division of net income.
  2. Divided in the ratio of original capital investment.
  3. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3.
  4. Salary allowances of $40,000 and $50,000, respectively, and the balance divided equally.
  5. Allowance of interest at the rate of 6% on original investments, salary allowances of $40,000 and $50,000, respectively, and the remainder divided equally.
  Hawes Albright
(a) $ $
(b) $ $
(c) $ $
(d) $ $
(e) $ $

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