User Account

All Pages

Determine the division of the net income

Assignment Help Accounting Basics
Reference no: EM131749263

Problem - Dividing Partnership Income:

Desmond Drury and Ty Wilkins have decided to form a partnership. They have agreed that Drury is to invest $44,700 and that Wilkins is to invest $104,300. 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:

1. Equal division.

2. In the ratio of original investments.

3. In the ratio of time devoted to the business.

4. Interest of 10% on original investments and the remainder in the ratio of 3:2.

5. Interest of 10% on original investments, salary allowances of $101,400 to Drury and $50,700 to Wilkins, and the remainder equally.

6. 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.

Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $447,000 and (2) net income of $196,800.

Reference no: EM131749263

Questions Cloud

Calculate free cash flow : In addition, cash spent for fixed assets during the period was $25,823,000. No dividends were paid. Calculate free cash flow
Explain what are advantages of dbscan clustering algorithm : Explain what are the advantages of DBSCAN clustering algorithm? Compare and contrast Eager and Lazy classification methods.
Evidence that the scores of high-progress readers are higher : Is there evidence that the scores of high-progress readers are higher than those of low-progress readers when they retell a story they have heard.
Provides an example of an ethical-legal issue faced : Do you feel a policy restricting employee Internet use is ethically sound?Provides an example of an ethical-legal issue faced.
Determine the division of the net income : For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $447,000 and (2) net income of $196,800
Analyze how you will overcome threats : Explain how you will overcome threats from each of the five forces while achieving your professional goal(s) after graduation from the MS-IST Program.
Discuss relationships leverage their existing relationships : Explain why a critical component of entrepreneurial success. If people are willing to
How much did she originally invest : Kim invested a sum of money 4 yr ago in a savings account that has since paid interest at the rate of 7%/year compounded monthly
Are any major deviations from normality apparent : Repeat the analysis for Story 2. Repeat the analysis of Exercise for the scores when children retell a story they have heard and seen illustrated with pictures.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the present value of 9280 to be received at the end

using the appropriate interest table answer each of the following questions. each case is independent of the others. a

  Compute the amount of dividends in total and per share

Compute the amount of 2015 dividends, in total and per share, that would be payable to each class of stockholders if dividends were declared as described in each case. Show computations

  Difference between the different opinions

What is the difference between the different opinions and/or explanatory paragraphs? How does the issuance of a report other than standard unqualified impact a company? Explain.

  The treasury stock purchased in above question was resold

chen inc. purchases 1000 shares of its own previously issued 5 per common stock for 12000. assuming the shares are held

  Corporation return on common stockholders equity

Ferman Corporation had net income of $200,000 and paid dividends of $50,000 to common stockholders and $20,000 to preferred stockholders in 2012. Ferman Corporation's common stockholders' equity at the beginning and end of 2012 was $870,000 and $1..

  Bakken corp has provided the following production and

bakken corp has provided the following production and average cost data for two levels of monthly production volume.

  Which deferred tax accounts and balances exist at december

At the end of 2018, which of the following deferred tax accounts and balances exist at December 31, 2018

  Determine the supplies used

The balance in the supplies account, before adjustment, represents the amount of supplies available during the period.

  While recognizing the non finance accounting staff as expert

Value of this project: To adapt your communication and managerial accounting concepts to non-accounting/finance colleagues while understanding and appreciating their contributions to the enterprise. Refer to the concepts and break them down so others

  When should an entry be made to remove the cost

When should an entry be made to remove the cost and the accumulated depreciation from the accounts?

  Prepare an amortization table through december

Prepare the journal entry to record the payment of interest and the amortization of the premium on July 1, 2011, assuming no accrual of interest on June 30.

  Def company will issue 2000000 in 10 10-year bonds when the

def company will issue 2000000 in 10 10-year bonds when the market rate of interest is 12. interest is paid

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd