Print Item Dividing Partnership Income Tyler Hawes and Piper Albright formed a p
ID: 2402000 • Letter: P
Question
Print Item Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $243,000 and $81,000, respectively. Determine their participation in the year's net income of $402,000, 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 18% allowed on original investments and the remainder divided in the ratio of 23. d. Salary allowances of $50,000 and $70,000, respectively, and the balance divided equally. e. Allowance o interest at the rate of 18% on orginal investments, salary allowances of $50,000 and $70,000 respectively, and the remainder divided equally. Hawes Albright (o) 201,00 201,000 PreviousNextExplanation / Answer
Answer for (b)-
dividing income in captial ratio
capital ratio=243000+81000=324000(base for calculation)
hawes=243000/324000*402000=301500
albright=81000/324000*402000=100500
Answer for (c)-
Interest @18%
hawes=243000*18%=43740
albright=81000*18%=14580
total interest=43740+14580=58320
Remaining income=402000-58320=343680
Remaining income to be divided in 2:3 ratio
hawes=343680*2/5=137472
albright=343680*3/5=206208
Answer for (d)
Salary hawes=50000
Salary albright=70000
.Remaining Profit=402000-120000=282000. this amount to be divided equally
Hawes share=28200/2=141000
albright=28200/2=141000
Answer for (e)
Interest@18%
hawes=243000*18%=43740
albright=81000*18%=14580
total interest=43740+14580=58320
Salary hawes=50000
Salary albright=70000
Remaining income=402000-58320-120000=223680 to be divided equally
hawes=223680/2=111840
albright=223680/2=111840
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