QUESTION $2$

$20$ points

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a$.$ Wallace and Simpson formed a partnership. Wallace contributed $$60,000,$ and Simpson contributed $$40,000.$ Their partnership agreement calls for the income $($loss$)$ division to be based on the ratio of capital investments. The partnership had income of $$150,000$ in its first year of operation. Determine how much net income should be allocated to Wallace and to Simpson.

$\backslash$table$[[$Allocate Net Income,,$],[$Net income allocated to each partner,Wallace,$]]$

$20$ points

QUESTION $3$

b$.$ Fallon and Springer formed a partnership on January $1.$ Fallon contributed $$90,000$ cash and equipment with a market value of $$60,000.$ Springer contributed $$30,000$ of cash and inventory with a market value of $$20,000.$ Partnership net income for Year $1$ was $$75,000,$

Determine each partner's share of the net income for each year, assuming income is divided equally.

$\backslash$table$[[$Allocate Net Income,,$],[$Net income allocated to each partner,Fallon,Springer$]]$

Net income allocated to each partner

$20$ points

QUESTION $4$

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c$.$ Fallon and Springer formed a partnership on January $1.$ Fallon contributed $$90,000$ cash and equipment with a market value of $$60,000.$ Springer contributed $$30,000$ of cash and inventory with a market value of $$20,000.$ Partnership net income for Year $1$ was $$75,000\mathrm{.}1.$

Determine each partner's share of the net income for each year, assuming income is divided based on a $2$:$1$ ratio.

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QUESTION $5$

$20$ points

d$.$ Fallon and Springer formed a partnership on January $1.$ Fallon contributed $$90,000$ cash and equipment with a market value of $$60,000.$ Springer contributed $$30,000$ of cash and inventory with a market value of $$20,000.$ Partnership net income for Year $1$ was $$75,000.$

Determine each partner's share of the net income for each year, assuming income is divided based on the ratio of the partners' original capital investments.

$\backslash$table$[[$Allocate Net Income,,$],[$Net income allocated to each partner,Fallon,Springer$]]$

QUESTION $6$

$20$ points

e$.$ Fallon and Springer formed a partnership on January $1.$ Fallon contributed $$90,000$ cash and equipment with a market value of $$60,000.$ Springer contributed $$30,000$ of cash and inventory with a market value of $$20,000.$ Partnership net income for Year $1$ was $$75,000.$

Determine each partner's share of the net income for each year, assuming income is divided based on interest allowance of $12\%$ on the original capital investments; salary allowance to Fallon of $$30,000$ and Springer of $$25,000$; and the remainder to be divided equally.

$\backslash$table$[[$Allocate Net Income,Fallon,Springer$],[$Net income allocated to each partner,$-,]]$