Question

Dividing Partnership Income

Tyler Hawes and Piper Albright formed a partnership, investing $369,000 and $123,000, respectively.

Determine their participation in the year's net income of $264,000 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 $78,000 and $108,000, respectively, and the balance divided equally.

Allowance of interest at the rate of 18% on original investments, salary allowances of $78,000 and $108,000, respectively, and the remainder divided equally.

	Hawes	Albright
(a)	$	$
(b)	$	$
(c)	$	$
(d)	$	$
(e)	$	$

Answer 1