Chapter 12 Accounting for Partnerships and Limited Liability Companies 2-3 Dividing partnership income OBJ. 2 ElbaM ub 000,73 u Dawson and Willow McDonald formed a partnership, investing $276,000 and 000, respectively. Determine their participation in the year's net income of $380,000 er each of the following independent assumptions: (a) no agreement concerning sion of net income; (b) divided in the ratio of original capital investment; (c) inter- at the rate of 5% allowed on original investments and the remainder divided in the o of 2:3; (d) salary allowances of $47,000 and $59,000, respectively, and the balance ded equally; (e) allowance of interest at the rate of 5% on original investments, ry allowances of $47,000 and $59,000, respectively, and the remainder divided equally. SYOS 101 yllups esdmom to insmotete nie.smpont as to visinkvi 2-4 Dividing partnership income 619 OBJ. 2 g each of the five assumptions as to income division listed in Exercise 12-3, determine income participation of Dawson and McDonald if the year's net income is $136,000. itimba e-sr XX

Chapter 12 Accounting for Partnerships and Limited Liability Companies 2-3 Dividing partnership income OBJ. 2 ElbaM ub 000,73 u Dawson and Willow McDonald formed a partnership, investing $276,000 and 000, respectively. Determine their participation in the year's net income of $380,000 er each of the following independent assumptions: (a) no agreement concerning sion of net income; (b) divided in the ratio of original capital investment; (c) inter- at the rate of 5% allowed on original investments and the remainder divided in the o of 2:3; (d) salary allowances of $47,000 and $59,000, respectively, and the balance ded equally; (e) allowance of interest at the rate of 5% on original investments, ry allowances of $47,000 and $59,000, respectively, and the remainder divided equally. SYOS 101 yllups esdmom to insmotete nie.smpont as to visinkvi 2-4 Dividing partnership income 619 OBJ. 2 g each of the five assumptions as to income division listed in Exercise 12-3, determine income participation of Dawson and McDonald if the year's net income is $136,000. itimba e-sr XX

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3SEB

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2. The partnership of David White and Paul Wacker incurred net income of $40,000 for the current year. David had invested $30,000 and Paul had invested $45,000. Calculate he distribution share to each partner if profits are divided in the ratio of:a. Investmentsb. 3:1
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