Elijah Samuels and Tony Winslow agreed to form a partnership. Samuels contributed $200,000 in cash, and Winslow
Question:
Elijah Samuels and Tony Winslow agreed to form a partnership. Samuels contributed $200,000 in cash, and Winslow contributed assets with a fair market value of $400,000. The partnership, in its initial year, reported net income of $120,000. Calculate the distribution of the first year’s income to the partners under each of the following conditions:
1. Samuels and Winslow failed to include stated ratios in the partnership agreement.
2. Samuels and Winslow agreed to share income and losses in a 3:2 ratio.
3. Samuels and Winslow agreed to share income and losses in the ratio of their original investments.
4. Samuels and Winslow agreed to share income and losses by allowing 10 percent interest on original and sharing any reminder equally.
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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