Reference no: EM132795659

The partnership agreement of Maxwell, Norris, and Otterman provides for the annual allocation of the business's profit or loss in the following sequence:

1. Maxwell, the managing partner, receives a bonus equal to 30 percent of the business's profit.
2. Each partner receives 20 percent interest on average capital investment.
3. Any residual profit or loss is divided equally.

The average capital investments for 2018 were as follows:

Maxwell $ 50,000
Norris $ 70,000
Otterman $100,000

problem 1: How much of the $80,000 partnership profit for 2019 should be assigned to each partner?