Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership,
ID: 2587068 • Letter: D
Question
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing $168,000 and $84,000, respectively.
Determine their participation in the year's net income of $348,000 under each of the following independent assumptions:
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 18% allowed on original investments and the remainder divided in the ratio of 2:3.
Salary allowances of $40,000 and $56,000, respectively, and the balance divided equally.
Allowance of interest at the rate of 18% on original investments, salary allowances of $40,000 and $56,000, respectively, and the remainder divided equally.
Hawes Albright (a) $ $ (b) $ $ (c) $ $ (d) $ $ (e) $ $Explanation / Answer
Answer:-
Determininig their participation in the year's net income of $348,000 under each of the following independent assumptions:
Hawes Albright (a) $ 174000 $ 174000 (b) $ 232000 $ 116000 (c) $ 126000 $ 126000 (d) $ 129000 $ 129000 (e) $ 103320 $ 103320