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Karen Savannah and Abby Kim formed a partnership

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January 10th, 2018

Karen Savannah and Abby Kim formed a partnership, investing $300,000 and $150,000,respectively. Determine their participation in the year’s net income of $330,000 under each ofthe following independent assumptions:a. No agreement concerning division of net income.b. Divided in the ratio of original capital investment.c. Interest at the rate of 8% allowed on original investments and the remainder divided in theratio of 3:2.d. Salary allowances of $60,000 and $80,000, respectively, and the remainder divided equally.e. Allowance of interest at the rate of 5% on original investments, salary allowances of $50,000and $70,000 respectively and the remainder divided equally. Show your work.

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