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Jackson and campbell have capital balances of $100,000 and $300,000 respectively. jackson devotes full time and campbell one-half time to the business. determine the division of $120,000 of net income under each of the following assumptions: a) no agreement as to division of net income
b) in ratio of capital balances
c) in ratio of time devoted to business
d) interest of 10% on capital balances and remainder equally
e) interest of 10% on capital balances, salaries of $40,000 to jackson and $20,000 to campbell and the remainder equally.
oslo company prepared the following contribution format income statement based on a sales volume of 1000 units the
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