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Carrie and Callie form a partnership in which Carrie contributes $85,000 in assets and agrees to...

Carrie and Callie form a partnership in which Carrie contributes $85,000 in assets and agrees to devote half time to the partnership. Callie contributed $50,000 in assets and agrees to devote full time to the partnership. If no additional information is available, how will Carrie and Callie share in the division of income?

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Answer #1

If there is no specific agreement regarding division of income among the partners , partners should share or divide income or loss equally.

In this case , there is no specific agreement between Carrie and Callie regarding division on Income. So they should distribute income equally or in 1:1 ratio.

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