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Dividing partnership income Dahl and Westhoff have decided to form a partnership. They have agreed...

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Accounting

image Dividing partnership income Dahl and Westhoff have decided to form a partnership. They have agreed that Dahl is to invest $195,000 and that Westhoff is to invest $65,000. Dahl is to devote one-half time to the business, and Westhoff 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 $50,000 to Dahl and $85,000 to Westhoff, and the remainder equally. f. Plan (e), except that Westhoff is also to be allowed a bonus of $29,000 if net income exceeds $100,000. Required

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