For each plan determine the division of the net income

Assignment Help Accounting Basics

Reference no: EM13589868

Dylan Howell and Demond Nickles have decided to form a partnership. They have agreed that Howell is to invest $50,000 and that Nickles is to invest $75,000. Howell is to devote full time to the business, and Nickles is to devote one-half 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 10% on original investments and the remainder in the ratio of 3:2.
Interest of 10% on original investments, salary allowances of $38,000 to Howell and $19,000 to Nickles, and the remainder equally.
Plan (e), except that Howell 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 $420,000 and (2) net income of $150,000.

Reference no: EM13589868

Questions Cloud

Cactus construction sells 1000000 of 8 bonds on january 1 : cactus construction sells 1000000 of 8 bonds on january 1 20xx. the bonds are unsecured but registered to the name of

Our company purchased equipment for 36000 on january 1 2013 : 1.interest is eligible to be capitalized as part of an assets cost rather than being expensed immediatelya on

Journalize the entry to record the first semi- annual : on january 1 2011 a company issued 1000000 of 5 year 12 bonds at an effective interest rate of 13 receiving cash of

If 269 ml of base are required to neutralize 205 ml of the : an aqueous solution of hydroiodic acid is standardized by titration with a 0.275 m solution of potassium hydroxide.if

For each plan determine the division of the net income : dylan howell and demond nickles have decided to form a partnership. they have agreed that howell is to invest 50000 and

Rhinos landscaping sells a quality brand of hoes shovels : rhinos landscaping sells a quality brand of hoes shovels and rakes in a sales mix of 242 25 50 25. the companys fixed

A mixture of 148 moles of c is reacted with 117 moles of o2 : question a mixture of .148 moles of c is reacted with .117 moles of o2 in a sealed 10l container at 500k producing co

A new investor became a member of the llc and as a result : 1. t contributed 100000 to a real estate llc in exchange for a 10 interest in capital and profits and losses. the

Our company issued callable bonds on january 1 2013 the : our company issued callable bonds on january 1 2013. the price of the bonds was 207020 and the face value of the bonds

User Account

All Pages