In: Finance
Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $294,000 and that Greene is to invest $98,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered:
Required:
For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $163,000 and (2) net income of $250,000. Round answers to the nearest whole dollar.