Reference no: EM13252204
Candace Hassell and Abby Lawson formed a partnership, investing $259,200 and $172,800, respectively.
Independent assumptions:
(a) no agreement concerning division of net income;
(b) divided in the ratio of original capital investment;
(c) interest at the rate of 18% allowed on original investments and the remainder divided in the ratio of 2:3;
(d) salary allowances of $68,000 and $94,000, respectively, and the balance divided equally;
(e) allowance of interest at the rate of 18% on original investments, salary allowances of $68,000 and $94,000, respectively, and the remainder divided equally.
Determine Hassell's and Lawson's participation in the year's net income of $252,000 under each of the independent assumptions above.
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