Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively. Determine their participation in the year’s net income of $290,000 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 5% allowed on original investments and the remainder divided in the ratio of 2:3. Salary allowances of $36,000 and $45,000, respectively, and the balance divided equally. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $45,000, respectively, and the remainder divided equally. Hawes Albright (a) $ $ (b) $ $ (c) $ $ (d) $ $ (e) $ $
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively. Determine their participation in the year’s net income of $290,000 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 5% allowed on original investments and the remainder divided in the ratio of 2:3. Salary allowances of $36,000 and $45,000, respectively, and the balance divided equally. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $45,000, respectively, and the remainder divided equally. Hawes Albright (a) $ $ (b) $ $ (c) $ $ (d) $ $ (e) $ $
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 2SEB
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Dividing
Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively.
Determine their participation in the year’s net income of $290,000 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 5% allowed on original investments and the remainder divided in the ratio of 2:3.
- Salary allowances of $36,000 and $45,000, respectively, and the balance divided equally.
- Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $45,000, respectively, and the remainder divided equally.
| Hawes | Albright | |
| (a) | $ | $ |
| (b) | $ | $ |
| (c) | $ | $ |
| (d) | $ | $ |
| (e) | $ | $ |
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