Reference no: EM131948077

Jake Hackenberg joined his father, Hank, in a turkey hatchery business Hank had previously operated as a sole proprietorship. When the partnership was formed, Hank contributed the assets of the proprietorship, which included cash, equipment, and inventory having a total value of $62,000. Jake contributed nothing. They agreed to share the profits equally. For twelve years Jake operated the business with very little help from his father. When the business was terminated Hank contended that he was entitled to the return of his capital investment of $62,000 before Jake could recover anything. Jake countered by arguing that he is entitled to one-half the value of the business. Explain who is correct in his contention.