Tyler Hawes and Piper Albright formed a partnership, investing $70,000 and $210,000, respectively. Determine their participation in the year's net income of $108,000 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 2:2. Salary allowances of $34,000 and $46,000, respectively, and the balance divided equally. Allowance of interest at the rate of 6% on original investments, salary allowances of $34,000 and $46,000, respectively, and the remainder divided equally.
Hawes
Albright
(a) $ $
(b) $ $
(c) $ $
(d) $ $
(e) $ $
Solution:
Division of Income | $108,000 | ||
S. No | Particulars | Hawes | Albright |
a | No agreement concerning division of net income (1:1) | $54,000.00 | $54,000.00 |
b | Divided in the ratio of original capital investment (1:3) | $27,000.00 | $81,000.00 |
c | Interest of 6% on original investment and remainder in ratio 2:2 | ||
Interest Amount (Opening Capital * 6%) Hawes (70000*6%) Albright (210000*6%) |
$4,200.00 | $12,600.00 | |
Distribution of remaining income (2:2) Remainder income= ($108,000 - $4,200 - $12,600) = 91,200 |
$45,600.00 | $45,600.00 | |
Total Share of Income (Interest + Remaining Distribution) | $49,800 | $58,200 | |
d | Salary allowance and balance divided equally | ||
Salary allowances to partner | $34,000.00 | $46,000.00 | |
Distribution of remaining income (1:1) Remainder income= ($108,000 - $34,000 - $46,000) = 28,000 |
$14,000.00 | $14,000.00 | |
Total Share of Income | $48,000 | $60,000 | |
e | Interest of 6% on original investment, Salary Allowances and remainder in the ratio of 1:1 | ||
Interest Amount (Opening Capital * 6%) Hawes (70000*6%) Albright (210000*6%) |
$4,200.00 | $12,600.00 | |
Salary Allowance | $34,000.00 | $46,000.00 | |
Distribution of remaining income (1:1) | $5,600.00 | $5,600.00 | |
Total Share of Income (Interest + Salary + Remaining Distribution) | $43,800.00 | $64,200.00 |
Tyler Hawes and Piper Albright formed a partnership, investing $70,000 and $210,000, respectively. Determine their participation...
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 $280,000 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 $46,000, respectively, and the balance divided equally. Allowance...
Tyler Hawes and Piper Albright formed a partnership, investing $67,500 and $202,500, respectively. Determine their participation in the year's net income of $300,000 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 $34,000 and $50,000, respectively, and the balance divided equally. Allowance of interest at...
1. Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $60,000 and $180,000, respectively. Determine their participation in the year's net income of $280,000 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 $34,000 and $45,000, respectively, and the balance divided equally....
Tyler Hawes and Piper Albright formed a partnership, investing $180,000 and $60,000, 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 5% allowed on original investments and the remainder divided in the ratio of 2:3. Salary allowances of $40,000 and $46,000, respectively, and the balance divided equally. Allowance of interest at...
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...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $108,000 and $162,000, respectively. Determine their participation in the year's net income of $108,000 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 6% allowed on original investments and the remainder divided in the ratio of 2:2 d. Salary allowances of $40,000 and $45,000, respectively, and the...
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 $280,000 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 $46,000, respectively, and the balance divided equally. Allowance...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $180,000 and $60,000, respectively. Determine their participation in the year's net income of $270,000 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 $40,000 and $46,000, respectively, and the balance divided equally. Allowance...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $62,500 and $187,500, 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 $34,000 and $45,000, respectively, and the balance divided equally. Allowance...
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 $300,000 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 $34,000 and $45,000, respectively, and the balance divided equally. Allowance...