Reference no: EM13342853

John Clark and David Haase decided to form a partnership on July 1, 20-6. Clark invested $60,000 and Haase invested $40,000. For the fiscal year ended June 30, 20-7, a net income of $80,000 was earned. Determine the amount of net income that Clark and Haase would receive under each of the following independent assumptions:

1. There is no agreement concerning the distribution of net income.

2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally.

3. Clark and Haase are to receive a salary allowance of $25,000 and $30,000, respectively. The remaining net income is to be divided equally.

4. Each partner is to receive 10% interest on their original investment. Clark and Haase are to receive a salary allowance of $25,000 and $30,000, respectively. The remaining net income is to be divided as follows: Clark, 30% and Haase, 70%.