Question

Divide the income of the partnership based on the several scenarios presented.

Answer 1

Question a:

 

$ 290,000 divided equally among two gives us $ 145,000 per partner.

 

Question b:

 

Tyler Hawes : $ 104000/260000 x $ 290,000 = $ 116,000

Piper Albright : $ 156,000/260000 x $ 290,000 = $ 174,000

 

Question c:

 

Interest for Tyler Hawes = 5% x $ 104,000 = $ 5200

Interest for Piper Albright = 5% x $ 156000 = $ 7800

 

Profit Left for Distribution = $ 290,000 - $ 5200 - $ 7800 = $ 277,000

 

Tyler Hawes = 2/5 x $ 277,000 + $ 5200 = $ 116,000

Piper Albright = 3/5 x $ 277,000 + $ 7800 = $ 174,000

 

Question d:

 

Profit Left for Distribution = $ 290,000 - $ 38000 - $ 49000 = $ 203,000

 

Dividing Equally, each partner gets $ 101,500

 

Tyler Hawes: $ 101,500 + 38000 = $ 139,500

Piper Albright : $ 101,500 + $ 49,000 = $ 150,500

 

Question e:

 

Allowances and Interest for Tyler Hawes: $ 5200 + $ 38000 = $ 43,200

Allowances and Interest for Piper Albright: $ 7800 + $ 49000 = $ 56,800

 

Remaining Profit : $ 290,000 - $ 43,200 - $ 56,800 = $ 190,000

Dividing equally, each partner gets $ 95,000

 

Tyler Hawes : $ 43,200 + $ 95,000 = $ 138,200

Piper Albright : $ 56,800 + $ 95,000 = $ 151,800

 

 

 

 

Hawes	Albright
a	$145,000	$145,000
b	$116,000	$174,000
c	$116,000	$174,000
d	$139,500	$150,500
e	$138,200	$151,800