Posted by **Jayde M.** on Tuesday, February 19, 2013 at 11:01pm.

Dividing Partnership Income

Desmond Drury and Ty Wilkins have decided to form a partnership. They have agreed that Drury is to invest $140,700 and that Wilkins is to invest $60,300. Drury is to devote full time to the business, and Wilkins is to devote one-half 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 10% on original investments and the remainder in the ratio of 3:2.

e.Interest of 10% on original investments, salary allowances of $136,600 to Drury and $68,300 to Wilkins, and the remainder equally.

f.Plan (e), except that Wilkins is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances.

For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $603,000 and (2) net income of $265,200.

## Answer This Question

## Related Questions

- Accounting - Dividing Partnership Income Desmond Drury and Ty Wilkins have ...
- algabra - Three individuals form a partnership and agree to divid the profits ...
- Business Law - Under the Revised Uniform Partnership Act a. partners are co-...
- Accounting 102 - Turner and Isham agreed to form a partnership. Turner ...
- accounting - kindly please help me. B1, G1, and P1 formed a partnership. They ...
- Business Law - In each of following situtations. is there any violation of ...
- Accounting - The capital accounts of Hawk and Martin have balances of $160,000 ...
- Federal Taxation - In 2005 Russell acquired and interest iin a partnership in ...
- Finance - You currently have $7,500 to invest. You can invest the full amount ...
- Accounting HELPPPP - Jim Johnson has 40% interest in Richards and Johnson, LLP. ...

More Related Questions