12-3 Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $315,000 and $105,000, respectively. Determine their...

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12-3
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing$315,000 and $105,000, respectively.
Determine their participation in the year's net income of$378,000 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 15% allowed on original investmentsand the remainder divided in the ratio of 2:3.
(D) Salary allowances of $66,000 and $90,000, respectively, andthe balance divided equally.
(E) Allowance of interest at the rate of 15% on originalinvestments, salary allowances of $66,000 and $90,000,respectively, and the remainder divided equally.
Hawes Albright
a _
b _ __
c _
d _
e _____

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4.0 Ratings (580 Votes)

A No agreement concerning division of net income Then Will Share Equally Total Tyler Hawes Piper Albright 50 50 378000 189000 189000 BDivided in the ratio of original capital investment Find out the ratio then divide their share of net income Total Tyler Hawes See Answer

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12-3Dividing Partnership IncomeTyler Hawes and Piper Albright formed a partnership, investing$315,000 and $105,000, respectively.Determine their participation in the year's net income of$378,000 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 15% allowed on original investmentsand the remainder divided in the ratio of 2:3.(D) Salary allowances of $66,000 and $90,000, respectively, andthe balance divided equally.(E) Allowance of interest at the rate of 15% on originalinvestments, salary allowances of $66,000 and $90,000,respectively, and the remainder divided equally.Hawes Albrighta _____ ______b _____ ______c _____ ______d ______ _______e ______ _______