Answer | ||||
a. | Distribution of income when no Agreement: | |||
Particulars | Tyler Hawes | Piper Albright | Total | |
Net Income | $ 2,80,000 | |||
Sharing income equally | $ 1,40,000 | $ 1,40,000 | $ 2,80,000 | |
b. | Distribution of income in the ratio of original capital investment: | |||
Particulars | Tyler Hawes | Piper Albright | Total | |
Net income | $ 2,80,000 | |||
Income (loss) allocation | $ 1,12,000 | $ 1,68,000 | $ 2,80,000 | |
(116000/290000) * 280000 | (174000/290000) * 280000 | |||
c. | Distribution of income after providing Interest allowance: | |||
3 | Particulars | Tyler Hawes | Piper Albright | Total |
Net Income | $ 2,80,000 | |||
a. Interest on Capital @6% | $ 6,960 | $ 10,440 | $ 17,400 | |
b. Balance | $ 2,62,600 | |||
c. Balance allocation (2:3) | $ 1,05,040 | $ 1,57,560 | $ 2,62,600 | |
d. Income (loss) allocation | $ 1,12,000 | $ 1,68,000 | $ 2,80,000 | |
d. | Distribution of income after providing Salary allowance: | |||
Particulars | Tyler Hawes | Piper Albright | Total | |
Net Income | $ 2,80,000 | |||
a. Salary allowance | $ 34,000 | $ 45,000 | $ 79,000 | |
b. Balance | $ 2,01,000 | |||
c. Balance allocation equally | $ 1,00,500 | $ 1,00,500 | $ 2,01,000 | |
d. Income (loss) allocation | $ 1,34,500 | $ 1,45,500 | $ 2,80,000 | |
e. | Distribution of income after providing interest and Salary allowance: | |||
Particulars | Tyler Hawes | Piper Albright | Total | |
Net Income | $ 2,80,000 | |||
a. Interest on Capital | $ 6,960 | $ 10,440 | $ 17,400 | |
b. Salary allowance | $ 34,000 | $ 45,000 | $ 79,000 | |
c. Balance | $ 1,83,600 | |||
d. Balance allocation | $ 91,800 | $ 91,800 | $ 1,83,600 | |
e. Income (loss) allocation | $ 1,32,760 | $ 1,47,240 | $ 2,80,000 |
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $116,000 and $174,000, respectively....
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 $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...
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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...
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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...
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 $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...
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