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Dividing partnership income Carmelo Fernandez and Bobby Morett formed a partnership, investing $187,500 and...

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Accounting

Dividing partnership income
Carmelo Fernandez and Bobby Morett formed a partnership, investing $187,500 and $62,500, respectively.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
Determine their participation in the year's net income of $275,000 under each of the following independent
a. No agreement concerning division of net income.
b. Divided in the ratio of original capital investment.
c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3.
d. Salary allowances of $36,000 and $45,000, respectively, and the balance divided equally.
e. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $45,000, respectively, and the remainder divided equally.
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