---------------Popeye Heckle -------Jeckle Cash -----------------112,000 -----50

Question

---------------Popeye Heckle -------Jeckle
Cash -----------------112,000 -----50,000
Supplies ---------------46,000
Equipment -------------226,000--- 222,000
Building ------124,000
Land ----------20,000

Consider each question as an independent situation.

14. If the net income of the partnership is $48,255 and the partnership agreement does not state how net income is to be divided, what amount of net income should be allocated to Jeckle?

15. The partners Popeye, Heckle, and Jeckle share net income based on the amount
of time they spend working in the business, which is expressed as 6:3:1 respectively. If the net income is $80,260, what amount of net income should be allocated to Popeye?

16. The partners share net income in the same ratio as the beginning balances of their capital accounts. If the net income is $54,200, what amount of net income should be allocated to Heckle?

Explanation / Answer

14. It will be split equally. $48,255 / 3 = $16,085

15. $80,260 X (6/10) = $48,156

16. Popeye has $124,000 + $20,000 = $144,000

Heckle had $112,000 + $46,000 + $226,000 = $384,000

Jeckle had $50,000 + $222,000 = $272,000

The total of all that is $800,000

So Popeye had $144,000 / $800,000 = 0.18

Heckle had $384,000 / $800,000 = 0.48

Jeckle has $272,000 / $800,000 = 0.34

So the net income to Heckle will be $54,200 X 0.48 = $26,016

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