Isha Shah and Brian Ruben agreed to form a partnership Shah contributed $400,000 in cash, and Ruben contributed assets with a fair market value of $800,000 The partnership, in its initial year, reported net income of $240,000 Calculate the distribution of the first years income to the partners unde...

1 Computation The partners share equally Shah 240000 1 2 120000 Ruben 240000 1 2 120000 ...

Isha Shah and Brian Ruben agreed to form a partnership. Shah contributed $400,000 in cash, and Ruben

Question:

Isha Shah and Brian Ruben agreed to form a Shah contributed $400,000 in cash, and Ruben contributed assets with a fair market value of $800,000. The in its initial year, reported net income of $240,000. Calculate the of the first year’s income to the partners under each of the following conditions:
1. Shah and Ruben failed to include stated ratios in the agreement.
2. Shah and Ruben agreed to share income and losses in a 3:2 ratio.
3. Shah and Ruben agreed to share income and losses in the ratio of their original investments.
4. Shah and Ruben agreed to share income and losses by allowing 10 percent interest on original investments and sharing any remainder equally.

Distribution
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...