Dividing Partnership Income
Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $201,000 and that Greene is to invest $67,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered:
Required:
For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $163,000 and (2) net income of $260,000. Round answers to the nearest whole dollar.
(1) | (2) | |||||||
$163,000 | $260,000 | |||||||
Plan | Morrison | Greene | Morrison | Greene | ||||
a. | $81,500 | $81,500 | $130,000 | $130,000 | ||||
b. | $122,250 | $40,750 | $195,000 | $65,000 | ||||
c. | $54,333 | $108,667 | $86,667 | $173,333 | ||||
d. | $84,850 | $78,150 | $133,350 | $126,650 | ||||
e. | $77,350 | $85,650 | $125,850 | $134150 | ||||
f. | $ | $ | $ | $ |
Answer :
Morrison | Greene | Morrison | Greene | |||||||
(f) | 201000*5%+60,000+7020 | 77070 | 67000*5%75,000+560+7020 | 85930 | Net income - total salary = 163000-60000-75000 = 28000,Bonus to green = 28000*2% = 560,remainder 163000-10050-3350-60000-75000-560= 14040,divided by 2 = 14040/2 = 7020 | 201000*5%+60,000+54550 | 124600 | 67000*5%+75,000+54550+2500 | 135400 | Net income - total salary = 260000-60000-75000 = 125000,Bonus to green = 125000*2%=2500,remainder 260000-10050-3350-60000-75000-2500=109100, divided by 2 = 109100/2 = 54550 |
Please upvote Thank You !!!
Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that...
Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $258,000 and that Greene is to invest $86,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: Equal division. In the ratio of original investments. In the ratio of time devoted to the business. Interest of 5% on original investments and the...
Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $246,000 and that Greene is to invest $82,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: a. Equal division. b. In the ratio of original investments. C. In the ratio of time devoted to the business. d. Interest of 6% on...
Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $270,000 and that Greene is to invest $90,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: a. Equal division. b. In the ratio of original investments. c. In the ratio of time devoted to the business. d. Interest of 5% on...
Dividing a ship Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $150,000 and that Greene is to invest $50,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: a. Equal division b. In the ratio of original investments. c. In the ratio of time devoted to the business. d. Interest of 6%...
Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $204,000 and that Greene is to invest $68,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: Equal division. In the ratio of original investments. In the ratio of time devoted to the business. Interest of 5% on original investments and the...
Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $183,000 and that Greene is to invest $61,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: a. Equal division. b. In the ratio of original investments. C. In the ratio of time devoted to the business. d. Interest of 6% on...
Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $177,000 and that Greene is to invest $59,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: Equal division. In the ratio of original investments. In the ratio of time devoted to the business. Interest of 5% on original investments and the remainder equally Interest...
eBook Show Me How a Calculator Print Hem Dividing Partnership Income Morrison and Greene have decided to om a partnership. They have agreed that Morrison is to invest $171 000 and that Greene is to invest $57,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered a. Equal division. b. In the ratio of original investments. c. In the ratio of time...
Dividing Partnership Income Dylan Howell and Demond Nickles have decided to form a partnership. They have agreed that Howell is to invest $50,000 and that Nickles is to invest $75,000. Howell is to devote full time to the business, and Nickles is to devote one-half time. The following plans for the division of income are being considered: Equal division. In the ratio of original investments. In the ratio of time devoted to the business. Interest of 10% on original investments...
Dividing Partnership Income IIIIII Dylan Howell and Demond Nickles have decided to form a partnership. They have agreed that Howell is to invest $50,000 and that Nickles is to invest $75,000. Howell is to devote full time to the business, and Nickles is to devote one-half time. The following plans for the division of income are being considered: a. Equal division b. In the ratio of original investments c. In the ratio of time devoted to the business. d. Interest...