Question

Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1. Spurlock invested $100,000 and Wilson invested $25,000. For the fiscal year ended June 30, 20-2, a net income of $80,000 was earned. Determine the amount of net income that Spurlock and Wilson would receive under each of the following independent assumptions:
1. There is no agreement concerning the distribution of net income.
2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally.
3. Spurlock and Wilson are to receive a salary allowance of $35,000 and $25,000, respectively. The remaining net income is to be divided equally.
4. Each partner is to receive 10% interest on their original investment. Spurlock and Wilson are to receive a salary allowance of $35,000 and $25,000, respectively. The remaining net income is to be divided as follows: Spurlock, 75% and Wilson, 25%.



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  • CreatedJune 07, 2014
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