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Question: dividing partnership income tyler hawes and piper albright formed a...

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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.

           Hawes                   Albright

a)

b)

c)

d)

e)

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