Kate DeLeo and Joe Desmond Decided to Form a Partnership

Essay

Kate DeLeo and Joe Desmond decided to form a partnership on January 1. DeLeo invested $50,000 and Desmond invested $30,000. On December 31, the end of the fiscal year, a net income of $100,000 was earneD.Required:
Determine the amount of net income that DeLeo and Desmond would receive under each of the following independent assumptions:
a.
There is no agreement concerning the distribution of net income.
b.
Each partner is to receive 10% on their original investment, and the remainder divided equally.
c.
DeLeo and Desmond are to receive a salary allowance of $35,000 and $45,000 respectively, and the remainder divided equally.
d.
Each partner is to receive 10% on their original investment, DeLeo and Desmond are to receive a salary allowance of $30,000 and $40,000 respectively, and the remainder divided as follows: 60% to DeLeo and 40% to Desmond.