Candace Hassell and Abby Lawson formed a partnership, investing $232,000 and $116,000, respectively. Determine their participation in the year's net income of $330,000 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 10% allowed on original investments and the remainder divided in the ratio of 2:3.

D. Salary allowances of $55,000 and $77,000, respectively, and the balance divided equally.

E. Allowance of interest at the rate of 10% on original investments, salary allowances of $55,000 and $77,000, respectively, and the remainder divided equally.

Answer rating: 100% (QA)

A 5050 33000050 165000 each B 2 3330000 220000 1 3330000 110000 C Orig inv 348000 Times 1... View the full answer