Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Explore thousands of questions and answers from knowledgeable experts in various fields on our Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
The distribution of income and losses to the partners is as follows:
Beau Dawson Willow McDonald Total
a) No agreement (income or loss
is shared equally) $137,500 $137,500 $275,000
b) Ratio of original capital $68,750 $206,250 $275,000
c) Interest at 6% and the remainder shared equally:
Total income shared $107,660 $167,340 $275,000
d) Salary Allowances and the remainder shared equally:
Total income shared $130,000 $145,000 $275,000
e) Interest at 6%, salary allowances of $34,000 and $49,000, and the remainder shared equally:
Total income shared $126,100 $148,900 $275,000
How do partners share profits?
Partners share profits and losses according to their partnership agreements.
In the absence of a partnership agreement, profits and losses are distributed equally.
Beau Dawson Willow McDonald Total
Capital investment $65,000 $195,000 $260,000
Profit-sharing ratio (capital) 1 : 3
Sum of ratios = 4
Net income for the year = $275,000
Profit-sharing under these scenarios:
Beau Dawson Willow McDonald Total
a) No agreement (income or loss
is shared equally) $137,500 $137,500 $275,000
b) Ratio of original capital $68,750 $206,250 $275,000
c) Interest at 6% and the remainder
in the ratio of 2:3
Interest on capital $3,900 $11,700 $15,600
Income-sharing $103,760 $155,640 $259,400
Total income shared $107,660 $167,340 $275,000
d) Salary Allowances $34,000 $49,000 $83,000
Income-sharing (equally) 96,000 96,000 $192,000
Total income shared $130,000 $145,000 $275,000
e) Interest at 6%, salary allowances of $34,000 and $49,000, and the remainder shared equally:
Interest on capital $3,900 $11,700 $15,600
Salary Allowances $34,000 $49,000 $83,000
Income-sharing (equally) $88,200 $88,200 $176,400
Total income shared $126,100 $148,900 $275,000
Learn more about profit distribution among partners at https://brainly.com/question/22693552
#SPJ1
We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.
