Question
In: Accounting
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $200,000 and $100,000, respectively....
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing $200,000 and $100,000, respectively.
Determine their participation in the year's net income of $348,000 under each of the following independent assumptions:
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 12% allowed on original investments and the remainder divided in the ratio of 2:3.
Salary allowances of $48,000 and $66,000, respectively, and the balance divided equally.
Allowance of interest at the rate of 12% on original investments, salary allowances of $48,000 and $66,000, respectively, and the remainder divided equally.
| Hawes | Albright | |
| (a) | $ | $ |
| (b) | $ | $ |
| (c) | $ | $ |
| (d) | $ | $ |
| (e) | $ | $ |
Solutions
Expert Solution
SOLUTION
(A) No agreement concerning division of net income.
Net Income = $348,000
Hawes - $348,000 / 2 = $174,000
Albright - $348,000 / 2 = $174,000
(B) Divided in the ratio of original capital investment.
Net Income = $348,000
Ratio = 2:1
Hawes - $348,000 * 2/3 = $232,000
Albright - $348,000 * 1/3 = $116,000
(C) Interest at the rate of 12% allowed on original investments and the remainder divided in the ratio of 2:3.
| Hawes ($) | Albright ($) | |
| Interest (12%*200,000), (12%*100,000) | 24,000 | 12,000 |
| Remainder in ratio 2:3 (312,000*2/5) (312,000*3/5) | 124,800 | 187,200 |
| Total | 148,800 | 199,200 |
Total interest = 24,000 + 12,000 = 36,000
Remainder = 348,000 - 36,000 = 312,000
(D) Salary allowances of $48,000 and $66,000, respectively, and the balance divided equally
| Hawes ($) | Albright ($) | |
| Salary | 48,000 | 66,000 |
| Remainder equally (234,000/2) | 117,000 | 117,000 |
| Total | 165,000 | 183,000 |
Salary= 48,000 + 66,000 = 114,000
Remainder = 348,000 - 114,000 = 234,000
(E) Allowance of interest at the rate of 12% on original investments, salary allowances of $48,000 and $66,000, respectively, and the remainder divided equally.
| Hawes ($) | Albright ($) | |
| Interest (12%*200,000), (12%*100,000) | 24,000 | 12,000 |
| Salary | 48,000 | 66,000 |
| Remainder equally (198,000/2) | 99,000 | 99,000 |
| Total | 171,000 | 177,000 |
Total interest = 24,000 + 12,000 = 36,000
Salary = 48,000 + 66,000 = 114,000
Remainder = 348,000 - 36,000 - 114,000 = 198,000
ekkarill92 answered 1 year agoRelated Solutions
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively....
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing
$210,000 and $70,000, respectively.
Determine their participation in the year's net income of
$295,000 under each of the following independent assumptions:
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 5% allowed on original investments and
the remainder divided in the ratio of 2:3.
Salary allowances of $34,000 and $48,000, respectively, and the
balance divided equally.
Allowance...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $234,000 and $78,000, respectively....
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing
$234,000 and $78,000, respectively.
Determine their participation in the year's net income of
$414,000, under each of the following independent assumptions.
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 18% allowed on original investments and
the remainder divided in the ratio of 2:3.
Salary allowances of $50,000 and $70,000, respectively, and the
balance divided equally.
Allowance...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively....
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing
$210,000 and $70,000, respectively.
Determine their participation in the year's net income of
$295,000 under each of the following independent assumptions:
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 5% allowed on original investments and
the remainder divided in the ratio of 2:3.
Salary allowances of $34,000 and $48,000, respectively, and the
balance divided equally.
Allowance...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $316,800 and $211,200, respectively....
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing
$316,800 and $211,200, respectively.
Determine their participation in the year's net income of
$246,000 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 $83,000 and $115,000, respectively, and
the...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $108,000 and $162,000, respectively....
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing
$108,000 and $162,000, respectively.
Determine their participation in the year's net income of
$285,000 under each of the following independent assumptions:
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 5% allowed on original investments and
the remainder divided in the ratio of 2:3.
Salary allowances of $38,000 and $46,000, respectively, and the
balance divided equally.
Allowance...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $302,400 and $201,600, respectively....
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing
$302,400 and $201,600, respectively.
Determine their participation in the year's net income of
$246,000 under each of the following independent assumptions:
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 12% allowed on original investments and
the remainder divided in the ratio of 2:3.
Salary allowances of $81,000 and $111,000, respectively, and the
balance divided equally.
Allowance...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $75,000 and $225,000, respectively....
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing
$75,000 and $225,000, respectively.
Determine their participation in the year's net income of
$109,000 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 6% allowed on original investments
and the remainder divided in the ratio of 2:2.
d. Salary allowances of $38,000 and $50,000, respectively, and
the...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $217,500 and $72,500, respectively....
Dividing Partnership Income
Tyler Hawes and Piper Albright formed a partnership, investing
$217,500 and $72,500, respectively.
Determine their participation in the year's net income of
$108,000 under each of the following independent assumptions:
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 5% allowed on original investments and
the remainder divided in the ratio of 2:2.
Salary allowances of $34,000 and $48,000, respectively, and the
balance divided equally.
Allowance...
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $60,000 and $180,000, respectively....
Dividing Partnership
Income
Tyler Hawes and Piper
Albright formed a partnership, investing $60,000 and $180,000,
respectively.
Determine their
participation in the year's net income of $280,000 under each of
the following independent assumptions:
No agreement concerning division of net income.
Divided in the ratio of original capital investment.
Interest at the rate of 6% allowed on original investments and
the remainder divided in the ratio of 2:3.
Salary allowances of $40,000 and $46,000, respectively, and the
balance divided equally.
Allowance...
12.3 2.Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $297,000 and $99,000,...
12.3
2.Dividing Partnership Income Tyler Hawes and Piper Albright
formed a partnership, investing $297,000 and $99,000, respectively.
Determine their participation in the year's net income of $270,000
under each of the following independent assumptions: No agreement
concerning division of net income. Divided in the ratio of original
capital investment. Interest at the rate of 10% allowed on original
investments and the remainder divided in the ratio of 2:3. Salary
allowances of $63,000 and $87,000, respectively, and the balance
divided equally....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain how biology, culture, and their interaction shape sex differences.
- Write a program that computes the tax and tip on a restaurant bill for a patron...
- clear all close all % %*******Parameter Settings******** %********************************* Fs=8192; %Sampling frequency (MATLAB's default) Ts=1/Fs; %Sampling time...
- Name a business that you believe has experienced declining costs attributable to computerization. Were variable costs...
- With C++, 1. Assume we use two linked lists that represent Set A and Set B...
- A beam of light shines on an equilateral glass prism at an angle of 45∘ to...
- This is an intro to python question. #Write a function called search_for_string() that takes two #parameters,...
ADVERTISEMENT