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Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $116,000 and $174,000, respectivel

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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
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