Answer a)
If there is no agreement concerning division of income so it will be devided eually | |||||
Hawes | Allbright | ||||
=290000/2 | =290000/2 | ||||
145000 | 145000 |
Answer b)
Hawes | Allbright |
=290000*72500/290000 | =290000*217500/290000 |
72500 | 217500 |
Total Capital investment | 290000 |
Hawes | 72500 |
Allbright | 217500 |
Answer c)
Hawes | Allbright | |
Interest On capital | 3625 | 10875 |
Remaining Profit | 110200 | 165300 |
Total | 113825 | 176175 |
Interest on capital | =72500*5% | =217500*5% |
Interest on capital | 3625 | 10875 |
Net Income | 290000 | |
Less : Interest on capital(3625+10875) | 14500 | |
Remaining Amount Divided into 2:3 | 275500 | |
Hawes Share(275500*2/5) | 110200 | |
All Bright Share (275500*3/5) | 165300 | |
275500 |
Answer D)
Hawes | Allbright | |
Salary | 34000 | 50000 |
Profit share | 103000 | 103000 |
137000 | 153000 | |
Balance Profit divided equally(290000-34000-50000) | 206000 | |
Hawes(206000/2) | 103000 | |
Allbright(206000/2) | 103000 |
Answer E)
Hawes | Allbright | |
Salary | 34000 | 50000 |
Interest on Capital | 3625 | 10875 |
Profit Share | 95750 | 95750 |
133375 | 156625 | |
Balance Profit divided equally(290000-34000-50000-3625-10875) | 191500 | |
Hawes(206000/2) | 95750 | |
Allbright(206000/2) | 95750 |
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $72,500 and $217,500, respectively....
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 $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...
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....
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...
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 $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 $34,000 and $48,000, respectively, and the balance divided equally. Allowance...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $75,000 and $225,000, respectively. Determine their participation in the year's net income of $290,000 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...
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: 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 $34,000 and $45,000, respectively, and the...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, Investing $112,000 and $168,000, 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 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $50,000, respectively, and the...
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 $280,000 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 $40,000 and $50,000, 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...