Copps, Rock, and Grey have recently formed a partnership by investing $50,000, $70,000, and $40,000, respectively....

Transcribed Image Text:

Copps, Rock, and Grey have recently formed a partnership by investing $50,000, $70,000, and $40,000, respectively. They are considering several methods of allocating income and losses. Compute the partners' shares of profits and losses under each of the following plans: Net income is $90,000 and the partners could not agree on a plan for net income/loss division. The net loss is $42,000 and the partners agreed to share in the profits based on a 2:1:2 ratio. The agreement did not address b) losses. Net income is $105,000 and the partners agreed to share profits based on the relationship of their initial capital balances. The net loss is $60,000 and the partners agreed to share profits and losses based on 50% to Copps, 15% to Rock, and 35% to c) d) Grey. Copps, Rock, and Grey have recently formed a partnership by investing $50,000, $70,000, and $40,000, respectively. They are considering several methods of allocating income and losses. Compute the partners' shares of profits and losses under each of the following plans: Net income is $90,000 and the partners could not agree on a plan for net income/loss division. The net loss is $42,000 and the partners agreed to share in the profits based on a 2:1:2 ratio. The agreement did not address b) losses. Net income is $105,000 and the partners agreed to share profits based on the relationship of their initial capital balances. The net loss is $60,000 and the partners agreed to share profits and losses based on 50% to Copps, 15% to Rock, and 35% to c) d) Grey.

Answer rating: 100% (QA)

a If the partners could not agree on a plan for net incomeloss division the income and losses would ... View the full answer