A partnership is formed by Terrence investing $150 000 and Marco investing $100 000. The partners are
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A partnership is formed by Terrence investing $150 000 and Marco investing $100 000. The partners are considering the following plans for dividing profits and losses.
- According to the ratio of their original investment
- Paying Terrence a salary of $60 000 and Marco a salary of $50 000 and the balance on the basis of their original investment
- A $60 000 salary to Terrence, 12% interest on their original investments, and the balance equally
Share the profits equally Required
(a) Determine the division of the profit or loss assuming a profit of $200 000.
(b) Determine the division of the profit or loss assuming a profit of $150 000.
(c) Determine the division of the profit or loss assuming a loss of $10 000.
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