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Dividing Partnership Income and Shannon is to devote full time. The following plans for the...

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Accounting

image Dividing Partnership Income and Shannon is to devote full time. The following plans for the division of income are being considered: a. Equal division. b. In the ratio of original investments. c. In the ratio of time devoted to the business. d. Interest of 5% on original investments and the remainder equally. e. Interest of 5% on original investments, salary allowances of $40,000 to Black and $75,000 to Shannon, and the remainder equally. f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: whole dollar. (1)

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