Reference no: EM13568495

Molly and Duke formed a partnership, investing $240,000 and $80,000 respectively. Determine their participation in the year's net income of $380,000 under each of the following indepedent assumptions.

a) No agreement concerning division of income

b) Divided in the ratio of original capital investment

c) Interest at the rate of 15% allowed on original investments and the remainder divided in the ratio 2:3.

d) Salary allowances of $50,000 and $70,000 respectively, balance divided equally.

e) Allowances of interest rate of 15% on original investment, salary allowances of $50,000 and $70,000 respectively, remainder divided equally.