1. For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $276,000 and (2) net income of $480,000. Present the data in tabular form, using the following columnar headings: $276,000
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- Dividing Partnership Income Dylan Howell and Demond Nickles have decided to form a partnership. They have agreed that Howell is to invest $50,000 and that Nickles is to invest $75,000. Howell is to devote full time to the business, and Nickles 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 $38,000 to Howell and $19,000 to Nickles, and the remainder equally. f. Plan (e), except that Howell is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $420,000 and (2) net income of $150,000. (1) (2) $420,000…Dividing Partnership Income Dylan Howell and Demond Nickles have decided to form a partnership. They have agreed that Howell is to invest $50,000 and that Nickles is to invest $75,000. Howell is to devote full time to the business, and Nickles 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 $38,000 to Howell and $19,000 to Nickles, and the remainder equally. f. Plan (e), except that Howell is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $420,000 and (2) net income of $150,000. (1) (2) $420,000…Dividing partnership income Dahl and Westhoff have decided to form a partnership. They have agreed that Dahl is to invest $400,000 and that Westhoff is to invest $100,000. Dahl is to devote one-third time to the business, and Westhoff is to devote two-thirds 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 5% on original investments and the remainder equally e. Interest of 5% on original investments, salary allowances of $80,000 to Dahl and $160,000 to Westhoff, and the remainder equally f. Plan (e), except that Westhoff is also to be allowed a bonus of $50,000 if net income exceeds $200,000 Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $300,000 and (2) net income of $750,000. Round answers to the nearest whole dollar. (2) $750,000 (1) $300,000 Westhoff (2)…
- Dividing partnership income Dahl and Westhoff have decided to form a partnership. They have agreed that Dahl is to invest $400,000 and that Westhoff is to invest $100,000. Dahl is to devote one-third time to the business, and Westhoff is to devote two-thirds 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 5% on original investments and the remainder equally e. Interest of 5% on original investments, salary allowances of $80,000 to Dahl and $160,000 to Westhoff, and the remainder equally f. Plan (e), except that Westhoff is also to be allowed a bonus of $50,000 if net income exceeds $200,000 Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $300,000 and (2) net income of $750,000. Round answers to the nearest whole dollar. (1) $300,000 (2) $750,000 (2) $750,000…Dividing Partnership Income Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $201,000 and that Shannon is to invest $67,000. Black is to devote one-half time to the business, and Shannon is to devote full 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 6% on original investments and the remainder equally. e . Interest of 6% on original investments, salary allowances of $45,000 to Black and $80,000 to Shannon, and the remainder equally. f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $160,000 and (2) net income of $205,000. Round answers to the nearest whole dollar.…Dividing Partnership Income Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $201,000 and that Shannon is to invest $67,000. Black is to devote one-half time to the business, and Shannon is to devote full 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 6% on original investments and the remainder equally. e. Interest of 6% on original investments, salary allowances of $45,000 to Black and $80,000 to Shannon, and the remainder equally. f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $160,000 and (2) net income of $205,000. Round answers to the nearest whole dollar. ANSWER…
- Can I please get help with this practice question 7.13 Watts and Lyon are forming a partnership. Watts invests $40,000 and Lyon invests $60,000. The partners agree that Watts will work one-fourth of the total time devoted to the partnership and Lyon will work three-fourths. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments; (b) in proportion to the time devoted to the business; (c) a salary allowance of $24,000 per year to Lyon and the remaining balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of $24,000 per year to Lyon, 9% interest on their initial capital investments, and the remaining balance shared equally. The partners expect the business to perform as follows: Year 1, $16,000 net loss; Year 2, $40,000 net income; and Year 3, $66,667 net income. . Note: Enter all allowances as positive values. Enter losses and capital deficits, if any, as…Dividing partnership income Dahl and Westhoff have decided to form a partnership. They have agreed that Dahl is to invest $153,000 and that Westhoff is to invest $51,000. Dahl is to devote one-half time to the business, and Westhoff is to devote full 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 6% on original investments and the remainder equally. e. Interest of 6% on original investments, salary allowances of $45,000 to Dahl and $80,000 to Westhoff, and the remainder equally. f. Plan (e), except that Westhoff is also to be allowed a bonus of $29,000 if net income exceeds $100,000. Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $178,000 and (2) net income of $245,000. Round answers to the nearest whole dollar. Plan a. b. C. d. e. f. (1) $178,000 Dahl $ $ $ $…Dividing Partnership Income Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $249,000 and that Shannon is to invest $83,000. Black is to devote one-half time to the business, and Shannon is to devote full 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 5% on original investments and the remainder equally. e. Interest of 5% on original investments, salary allowances of $55,000 to Black and $85,000 to Shannon, and the remainder equally. f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $142,000 and (2) net income of $230,000. Round answers to the nearest whole dollar. (1) (2)…
- Problem 8 Determining a New Partner’s Investment Cost (Incentive Activity) The following condensed balance sheet to presented for the partnership of Balagtas, Sicat, and Par, who share profits and losses in the ratio of 4:3:3, respectively. CashOther Assets Total Assets Php 400,000 7,100,000 Php 7,500,000 Accounts Payable Balagtas, Capital Sicat, Capital Par, Capital Total Liabilities and Capital Php 1,500,000 2,600,000 1,800,000 1,600,000 Php 7,500,000 Assume that the partnership decided to admit Rementina as a new partner with one-fourth interest. Required: For each of the following independent cases, determine the amount that Rementina must contribute in cash or other assets: Goodwill of Php 300,000 to be recorded and allocated to the prior partners. The prior partners, Balagtas, Sicat, and Par, agreed to credit Rementina for Php 100,000 of goodwill upon admission into the partnership.Problem 8 Determining a New Partner's Investment Cost (Incentive Activity) The following condensed balance sheet to presented for the partnership of Balagtas, Sicat, and Par, who share profits and losses in the ratio of 4:3:3, respectively. Cash Php 400,000 Accounts Payable Php 1,500,000 Other Assets 7,100,000 Balagtas, Capital 2,600,000 Sicat, Capital 1,800,000 Par, Capital 1,600,000 Total Assets Php 7,500,000 Total Liabilities and Capital Php 7,500,000 Assume that the partnership decided to admit Rementina as a new partner with one-fourth interest. Required: For each of the following independent cases, determine the amount that Rementina must contribute in cash or other assets: 1. Goodwill of Php 300,000 to be recorded and allocated to the prior partners. 2. The prior partners, Balagtas, Sicat, and Par, agreed to credit Rementina for Php 100,000 of goodwill upon admission into the partnership.Dividing partnership incomeMorrison and Greene have decided to form a partnership. They haveagreed that Morrison is to invest $150,000 and that Greene is to invest$50,000. Morrison is to devote one-half time to the business, and Greeneis to devote full time. The following plans for the division of income arebeing considered: a. Equal divisionb. In the ratio of original investmentsc. In the ratio of time devoted to the businessd. Interest of 6% on original investments and the remainderequally e. Interest of 6% on original investments, salary allowances of$40,000 to Morrison and $70,000 to Greene, and the remainderequallyf. Plan (e), except that Greene is also to be allowed a bonus equal to20% of the amount by which net income exceeds the total salaryallowances InstructionsFor each plan, determine the division of the net income under each ofthe following assumptions: (1) net income of $115,000 and (2) netincome of $200,000. Present the data in tabular form, using the followingcolumnar…