Determine the division of the profit or loss
Course:- Accounting Basics
Reference No.:- EM131567751

Assignment Help
Assignment Help >> Accounting Basics

Problem -

A partnership is formed by Robert investing $150,050 and Linda investing $100,000. The partners are considering the following plans for dividing profits and losses:

(a) according to die ratio of their original investment

(b) paying Robert a salary of $60,000 and Linda a sailary of $50,000 and the balance on the basis of their original investment

(c) a $60,000 can salary to Robert, 12% interest on their original investments, and the balance equally

(d) share the profits equally.


A. Determine the division of the profit or loss assuming a profit $200,000.

B. Determine the division of the profit or loss assuming a profit $150,000.

C. Determine the division of the profit or loss assuming a profit $10,000.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Based on Ignall and Kolesar (1972). Dominic's Pizza Parlor receives 30 calls per hour for delivery of pizza. It costs Dominic's $10 to send out a truck to deliver pizzas. Ea
A number of business transactions carried out by Smalling Manufacturing Company are as follows: -  Borrowed money from a bank.-  Sold land for cash at a price equal to its cos
You are considering an investment in the common stock of Keller Corp. The stock is expected to pay a dividend of $2 a share at the end of the year (D1 = $2.00).
Baseballs used in the major leagues in the United States must adhere to strict stan- dards. One such standard is that the circumference must be between 9 and 9.25 inches.
Identify which of the above liabilities are likely current and which are likely longterm. Say if an item fits in neither category. Explain the reasoning for your selection.
The president was elated when he saw that actual costs exceeded standard costs by only $0.30 per football. He stated, ?oI was afraid that our unit cost might get out of hand
The Tan Company purchased merchandise inventory on account with a list price of $5,000 and credit terms of 1/20, n/45. What was the net or cash cost for the merchandise?
A state lottery commission pays the winner of the Million Dollar lottery 40 installments of $25,000/year. The commission makes the first payment of $25,000 immediately and the