Question: dividing partnership income tyler hawes and piper albright formed a...
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing $316,800 and $211,200, respectively.
Determine their participation in the year's net income of $246,000 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 10% allowed on original investments and the remainder divided in the ratio of 2:3.
D. Salary allowances of $83,000 and $115,000, respectively, and the balance divided equally.
E. Allowance of interest at the rate of 10% on original investments, salary allowances of $83,000 and $115,000, respectively, and the remainder divided equally.