Bellamy, Carlisle, and Davidson formed a limited partnership. Bellamy and Carlisle were the general partners and Davidson the limited partner.They contributed capital in the amounts of $100,000, $100,...
Bellamy, Carlisle, and Davidson formed a limited partnership. Bellamy and Carlisle were the general partners and Davidson the limited partner.They contributed capital in the amounts of $100,000, $100,000, and $200,000, respectively, but then could not agree on a profit-sharing formula. At the end of the first year, how should they divide their profits?
Homework Answers
Under the Limited Partnership rules, absent an agreement otherwise, profits are shared based upon the partners' capital contributions.
So, if the profit is x dollars.
It will be shared in the ratio of 1:1:2 ( as they have made respective contributions)
for which, bellamy gets x/4
carlisle gets x/4
davidson gets x/2
PLEASE LEAVE A LIKE IF YOU FIND THIS HELPFUL. THANKS A LOT.
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