Desmond Drury and Ty Wilkins have decided to for a partnership. They have agreed

Question

Desmond Drury and Ty Wilkins have decided to for a partnership. They have agreed that Drury is to invest $97,200 and that Wilkins is to invest $24,300. Drury is to devote full time to the business, and Wilins is to devote one half time.

d. Interest of 10% on original invest and the remainder in the ratio of 3:2

e. Interest of 10/5 on original investments, salary allowances of $82,600 to Drury and $41,300 to Wilkins, and the remainder equally.

f. Plan (e), expert that Wilkins 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 $364,5009 and (2) net income of $160,500

please help me with the 3 question step by steop if you can so I can see how you got it. Thank you so much

Explanation / Answer

(1)(1)Net income of $364,5009 ..and total Salary allowances=123,900

==>

Net income of Wilkins =0.1*24300*2+0.9*(24300+97200)*(2/5+0.5)+41300+0.2*(3645009-82600-41300)=848796.8

Net income of Drury =3645009-848796.8=2796212.2

(2)Net income of 160,500

==>Net income of Wilkins=0.1*24300*2+0.9*(24300+97200)*(2/5+0.5)+41300+0.2*(160,500-82600-41300)=$151895

Net incomof Drury=$8605

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