Jennifer Wyatt and Megan Truett formed a partnership, investing $330,000 and $110,000, respectively. Determine their participation in
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Jennifer Wyatt and Megan Truett formed a partnership, investing $330,000 and $110,000, respectively. Determine their participation in the year’s net income of $420,000 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 8% allowed on original investments and the remainder divided in the ratio of 2:3;
(d) Salary allowances of $50,000 and $70,000, respectively, and the balance divided equally;
(e) Allowance of interest at the rate of 8% on original investments, salary allowances of $50,000 and $70,000, respectively, and the remainder divided equally.
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