Reference no: EM131296116
Dividing Partnership Income
Morrison and Amato have decided to form a partnership. They have agreed that Morrison is to invest $150,000 and that Amato is to invest $50,000. Morrison is to devote one-half time to the business and Amato is to devote full time. The following plans for the division of income are being considered:
Equal division.
In the ratio of original investments.
In the ratio of time devoted to the business.
Interest of 12% on original investments and the remainder equally.
Interest of 12% on original investments, salary allowances of $30,000 to Morrison and $64,000 to Amato, and the remainder equally.
Plan (e), except that Amato 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 $105,000 and (2) net income of $180,000.
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: If the required direct materials purchases are 21,200 pounds, the direct materials needed for production are 53,800, and the beginning direct materials are 66,400, what are the desired ending direct materials in pounds?
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Dividing partnership income
: Morrison and Amato have decided to form a partnership. They have agreed that Morrison is to invest $150,000 and that Amato is to invest $50,000. Morrison is to devote one-half time to the business and Amato is to devote full time. The following plans..
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The desired ending direct materials in pounds
: If the required direct materials purchases are 21,200 pounds, the direct materials needed for production are 53,800, and the beginning direct materials are 66,400, what are the desired ending direct materials in pounds?
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