Dyer and Salinas has decided to form a partnership. They have agreed that dyer i

Question

Dyer and Salinas has decided to form a partnership. They have agreed that dyer is to invest 120,000 and that Salinas is to invest 40,000 dyer is to devote one half time to the business and Salinas is to devote full time. the following plans for the division of income are being considered: a. equal division b. in the ratio of original investment c. in the ratio of rime devoted to the business interest of 12% on original investments and the remainder equally e. interest of 12% on original investment salary allowances of 32,000 to dyer and 64,000 to saline and the remainder equally. plan expect that Salinas is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances, for each plan determine the division of the net income under each of the following assumptions 1. net income of 108000 2. Met mope pf 150,000

Explanation / Answer

Hi, If you like my answer, please rate my answer first and according to my answer...that way only I can earn points. Thanks 1) Net Income = 108000 Case Dyer Salias a. equal division 54000 54000 b. in the ratio of original investment 81000 27000 c. in the ratio of rime devoted to the business 72000 36000 d. interest of 12% on original investments and the remainder equally 58800 49200 e. interest of 12% on original investment salary allowances of 32,000 to dyer and 64,000 to saline and the remainder equally 42800 65200 2) Net Income of 150000 Case Dyer Salias a. equal division 75000 75000 b. in the ratio of original investment 112500 37500 c. in the ratio of rime devoted to the business 100000 50000 d. interest of 12% on original investments and the remainder equally 79800 70200 e. interest of 12% on original investment salary allowances of 32,000 to dyer and 64,000 to saline and the remainder equally 63800 86200

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