Candace Hassell and Abby Lawson formed a partnership, investing $309,600 and $206,400, respectively.

Determine their participation in the year’s net income of $312,000 under each of the following independent assumptions:

  1. No agreement concerning division of net income.
  2. Divided in the ratio of original capital investment.
  3. Interest at the rate of 18% allowed on original investments and the remainder divided in the ratio of 2:3.
  4. Salary allowances of $81,000 and $111,000, respectively, and the balance divided equally.
  5. Allowance of interest at the rate of 18% on original investments, salary allowances of $81,000 and $111,000, respectively, and the remainder divided equally.