Question

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 $280,000 under each of the following independent assur 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 2:3. d. Salary allowances of $38,000 and $45,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $38,000 and $45.000, respectively and the remainder divided equally. Hawes Albright @@SSO

Answer 1

Partniship is that fam of orgomis ofion wehich managed. persons uho imeest A shore the profits losses acodry to úo ovend by twr mores detimined ratio pece Albaft Tat 28000 Havrs 140000 140000 ag Net mcemelE) b Net gncome (3:1) 28000 70000 210000 s Interst allowencelA) 10800 14400 3600 159 360 Ramaining Income (8) C2:3) 106 240 265 600 162960 280000 Nat 9mceme 117040 CA +B) Salang Allewance (A) Reynairing Income (B) Nct 9ncome (A+B) uS000 38000 83000 98500 98560 143500 280000 136500

Total A. E) Intirist Allowsonce 10800 Solary A lowance 14400 3600 3ు wsా 83000 Remaining Income Net Income 91300 91300 182600 140150 139900 280000