American Public University Operations And Supply Chain Management Assignment Help - Dividing Partnership Income
Question - Tim Snyder and Jay Wise have decided to form a partnership. They have agreed that Snyder is to
invest $30,000 and that W ise is to invest $40,000. Snyder is to devote full time to the business, and
Wise 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 investmetns, salary allowances of $34,000 to Snyder and $17,000 to
Wise, and the remainder equally.
f. Same as in (e), except that Snyder is also to be allowed a bonus equal to 20% of the amount by
which net income exc ...Read More
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