Reference no: EM132484031

Copps, Rock, and Grey have recently formed a partnership by investing $50,000, $70,000, and $40,000, respectively. They are considering several methods of allocating income and losses.

Question 1: Compute the partners' shares of profits and losses under each of the following plans:

a) Net income is $60,000 and the partners could not agree on a plan for net income/loss division.

b) The net loss is $24,000 and the partners agreed to share in the profits based on a 2:2:1 ratio. The agreement did not address losses.

c) Net income is $75,000 and the partners agreed to share profits based on the relationship of their initial capital balances.

d) The net loss is $30,000 and the partners agreed to share profits and losses based on 15% to Copps, 50% to Rock, and 35% to Grey.

• Round all answers to the nearest whole dollar. A table may be used to show answer