Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership,
ID: 341862 • Letter: D
Question
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, Investing $540,000 and $180,000, respectively. Determine their particlpation In the year's net Income of $264,000 under each of the following Independent assumptions: a. No agreement concening 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 $113,000 and $157,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 10% on original investments, salary allowances of $113,000 and $157,000. respectively, and the remainder divided equally. Hawes Albright (132,000 000 198,000 66,000 115,200 0 e 76 800 113.200 heck My Work 2 more Check My Work uses remaining. PreviousNext All work saved. Save and Exit Submit Assignment for Grading k Air P11 F6 F7 F8 F9 10
Explanation / Answer
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(1) $264,000 Plan Hawes Albright a. $132,000 $132,000 b. 198,000 66,000 c. 130,800 133,200 d. 110,000 154,000 e. 128,000 136,000 Details: $264,000 Hawes Albright Total a. Net income (1:1) $132,000 $132,000 $264,000 b. Net income (3:1) $198,000 $66,000 $264,000 c. Interest allowance* $54,000 $18,000 $72,000 Remaining income (2:3) 76,800 115,200 192,000 Net income $130,800 $133,200 $264,000 d. Salary allowance 113,000 157,000 270,000 Remaining income (1:1) $ (3,000) $ (3,000) $ (6,000) Net income $110,000 $154,000 $264,000 e. Interest allowance $54,000 $18,000 $72,000 Salary allowance 113,000 157,000 270,000 Remaining income (1:1) -39,000 -39,000 -78,000 Net income $128,000 $136,000 $264,000 * 540000 x 10% = 54000 180000 x 10% = 18000