Reference no: EM13826886
Nicole Murphy and Ashley Drake formed a partnership, investing $270,000 and $90,000, respectively.
Determine their participation in the year's net income of $126,000, 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 5% allowed on original investments and the remainder divided in the ratio of 2:3.
d. Salary allowances of $40,000 and $50,000, respectively, and the balance divided equally.
e. Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $50,000, respectively, and the remainder divided equally.
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: Nicole Murphy and Ashley Drake formed a partnership, investing $270,000 and $90,000, respectively. Determine their participation in the year's net income of $126,000, under each of the following independent assumptions. No agreement concerning divisi..
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