engage exhibit 2jpg (765x285) xCengageNoW21Onli x Cengage Learning C The Payroll
ID: 2571289 • Letter: E
Question
engage exhibit 2jpg (765x285) xCengageNoW21Onli x Cengage Learning C The Payroll Register or x enow.com/ilrn/takeAssignment/takeAssignmentMain.do?invo gnmentSessionLocator-assignment-takeelinprogress false d Problems eBook Show Me How Calculator Print Itenm Dividing Partnership Income ET.AL. Tyler Hawes and Piper Albright formed a partnership, investing $216,000 and $72,000, respectively. Determine their participation in the year's net income of $396,000 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 12% allowed on original investments and the remainderdivided in the ratio of 2:3. d. Salary allowances of $45,000 and $63,000, respectively, and the balance divided equally e. Allowance of interest at the rate of 15% on original investments salary allowances of $4S,000 and S63000 respectively, and the re nai der divided equal Hawes Albright (c) s (e)s Check My Work 2 more Check My Wor uses remaining 44 AM emsExplanation / Answer
1)
a.
ratio = 3:1
Hawes = 3/4
Albright = 1/4
99000
c
Interest on capital 12%
Net income[396000 - 34560 =361440]
25920
361440*2/5
=144576
170496
8640
361440*3/5
=216864
225504
Salary
Net income [396000 - 108000 = 288000 equally]
45000
144000
189000
63000
144000
207000
Interest on capital 12%
Salary
Net income [396000 -34560- 108000 = 253440 equally]
25920
45000
126720
197640
8640
63000
126720
198360
2) Amount of cash received
18000 * 2/3
= 12000
18000 * 1/3
= 6000
Basis Hawes Albrighta.
[396000 * 1/2] each 198000 198000 bratio = 3:1
Hawes = 3/4
Albright = 1/4
29700099000
c
Interest on capital 12%
Net income[396000 - 34560 =361440]
25920
361440*2/5
=144576
170496
8640
361440*3/5
=216864
225504
dSalary
Net income [396000 - 108000 = 288000 equally]
45000
144000
189000
63000
144000
207000
eInterest on capital 12%
Salary
Net income [396000 -34560- 108000 = 253440 equally]
25920
45000
126720
197640
8640
63000
126720
198360
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