Reference no: EM132481348

Question 1: Brittany Taylor and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively. Determine their participation in the year's net income of $250,000 under each of the following independent assumptions:

Option A. no agreement concerning division of net income

Option B. divided in the ratio of original capital investment

Option C. interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3

Option D. salary allowances of $30,000 and $40,000, respectively, and the balance divided equally

Option E. allowance of interest at the rate of 5% on original investments, salary allowances of $30,000 and $40,000, respectively, and the remainder divided equally.