Dividing Partnership Income

Candace Hassell
and Abby Lawson formed a partnership, investing $374,400 and $249,600,
respectively.

Determine their
participation in the year’s net income of $408,000, 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 12% allowed
on original investments and the remainder divided in the ratio of 2:3.

d.
Salary allowances of $98,000 and
$136,000, respectively, and the balance divided equally.

e.
Allowance of interest at the rate of
12% on original investments, salary allowances of $98,000 and $136,000,
respectively, and the remainder divided equally.

Hassell

Lawson

(a)

$

$

(b)

$

$

(c)

$

$

(d)

$

$

(e)

$

$