Beau Dawson and Willow McDonald formed a partnership, investing $210,000 and $70,000, respectively.
Determine their participation in the year's net income of $110,000 under each of the following independent assumptions:
a. No agreement concerning division of net income.
b. Divided in the ratio of original capital investment.
Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3.
d. Salary allowances of $38,000 and $46,000, respectively, and the balance divided equally.
e. Allowance of interest at the rate of 6% on original investments, salary allowances of $38,000 and $46,000, respectively, and the remainder divided equally.
