Determine the income participation of Taylor and Albright, according to each of the five assumptions as to income division listed in Exercise 12-3, if the year's net income is $96,000?
In Exercise 12-3
Brittany Taylor and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively. Determine their participation in the year's net income of $250,000 under each of the following independent assumptions:
(a) No agreement concerning division of net income;
(b) Divided in the ratio of original capital investment;
(c) Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3;
(d) Salary allowances of $30,000 and $40,000, respectively, and the balance divided equally;
(e) Allowance of interest at the rate of 5% on original investments, salary allowances of $30,000 and $40,000, respectively, and the remainder divided equally?