Question

Dividing Partnership Income Tyler Hawes and Plper Albright formed a partnershlp, Investing $315,000 and $105,000, respectively Determine their participation in the year's net Income of $354,000 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 18% allowed on original Investments and the remainder divided in the ratio of 23. d Salary allowances of $66,000 and $90,000, respectively, and the balance divided equally, e Allowance of Interest at the rate of 18% on original investments, salary allowances of $66,000 and $90,000, respectively, and the remainder divided equally. Albright 177,000 118,000X 11,340 | X Hawes 4 (a) $177,000!? (b) 236,000 X (c) 22,000) x 11,340) x ??? 99,000) x e) 183,000 170,100 (d) 123,000) x Fosdback Chack My Work Set up a column for each partner and a total collumn. a. Determine the distribution of Income and losses in the absence of a partnership agreement. b. Use the ratio of the partner's original capital Iinvestment to distribute the net Income. C. Use the stated percentage to determine the lnterest allowance. Distribute the remaining income based on the stated ratio. d. Assign each partner's stated salary allowance. Distribute the remaining Income based on the stated ratio. e. Use the stated percentage to determine the Interest allowance. Assign each partner's salary allowance. Distribute the remalining Income based on the stated ratio.

Answer 1

a) in the abvenre of agreement, nef inome wild Hawe A lbright 38400x Netincome 3540) 177,00 17740 d Retio of partner's arigmal in atmnt ie 吖 91 Rotio Hows C) Howe belamca Net income in 7aho f 2714の 9799ax2 2:9 L340- 510,-1)1,0 56700 189 928,40 167046 Total $ 168,060

Howes Salar 6 6,C0D Balance Netin(oma 9gam 198000 X in 1:1 99 CoD S 189,00 Ce) Howes Interest 56,70 13,9070 6 6 COD 99 000 6,200 6,20D in 1: 1 66C 90 00 Total ラ 19.9.74