Wednesday
September 17, 2014

Homework Help: Accounting

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

First Name:
School Subject:
Answer:

Related Questions

Accounting - Dividing Partnership Income Desmond Drury and Ty Wilkins have ...
algabra - Three individuals form a partnership and agree to divid the profits ...
Accounting 102 - Turner and Isham agreed to form a partnership. Turner ...
Business Law - Under the Revised Uniform Partnership Act a. partners are co-...
accounting - kindly please help me. B1, G1, and P1 formed a partnership. They ...
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 ...
Accounting HELPPPP - Jim Johnson has 40% interest in Richards and Johnson, LLP. ...
Business Law - In each of following situtations. is there any violation of ...
Finance - Dean and Jerry formed a partnership, agreeing to share profits and ...

Search
Members