Desmond drury and ty wilkins have decided to form a

Assignment Help Accounting Basics

Reference no: EM13603265

Desmond Drury and Ty Wilkins have decided to form a partnership. They have agreed that Drury is to invest $20,000 and that Wilkins is to invest $30,000. Drury is to devote full time to the business, and Wilkins is to devote one-half time. The following plans for the division of income are being considered:

a. Equal division.
b. In the ratio of original investments.
c. In the ratio of time devoted to the business.
d. Interest of 10% on original investments and the remainder in the ratio of 3:2.
e. Interest of 10% on original investments, salary allowances of $34,000 to Drury and $17,000 to Wilkins, and the remainder equally.
f. Plan (e), except that Drury is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the salary allowances.

For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $150,000 and (2) net income of $66,000.

Reference no: EM13603265

Questions Cloud

Bc company uses a job order cost accounting system during : bc company uses a job order cost accounting system. during the month of april the following events occurreda purchased

In each of the following situations the sampling frame does : in each of the following situations the sampling frame does not match the population resulting in undercoverage. give

A 100 kg car travelling at 20 ms collides with a 100 kg : a 100 kg car travelling at 20 ms collides with a 100 kg car traveling at 8 ms in opposite direction a if the two cars

An airplane used to drop water on bushfire is flying : an airplane used to drop water on bushfire is flying horizontally in a straight line at 180 mih at altitude of 300 ft.

Desmond drury and ty wilkins have decided to form a : desmond drury and ty wilkins have decided to form a partnership. they have agreed that drury is to invest 20000 and

Ts bakery makes a variety of cakes cookies and pics for : toms bakery makes a variety of cakes cookies and pics for distribuition to five major chains of grocery stores in the

What force must be applied to 5kg object to move it : what force must be applied to 5kg object to move it downward with acceleration 1 ms2 ? what is the direction of the

Not included in inventory is 8540 of merchandise purchased : werth company asks you to review its december 31 2010 inventory values and prepare the necessary adjustments to the

If a bag contains 3 white 2 black and 4 red balls and four : if a bag contains 3 white 2 black and 4 red balls and four balls are drawn at random with replacement calculate the

User Account

All Pages