Reference no: EM131125763
1. Candace Hassell and Abby Lawson formed a partnership, investing $240,000 and $80,000, respectively. Determine their participation in the year's net income of $200,000 under each of the following 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 15% allowed on original investments and the remainder divided in the ratio of 2:3;
(d) Salary allowances of $50,000 and $70,000, respectively, and the balance divided equally;
(e) Allowance of interest at the rate of 15% on original investments, salary allowances of $50,000 and $70,000, respectively, and the remainder divided equally.
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