Question #274759

assume that tom and jerry from a partnership with investment of 88000$ and120000$ separately. Determine the partnership in net income of 88000$ for the division of the partnership net income under the following conditions.

  1. No agreement concerning division
  2. Division is made in the ration of their original investment
  3. Division is made according to the agreement that he rate of 8% allowed on original investment and the remainder divided in the ratio of 2:1
1
Expert's answer
2021-12-05T18:56:47-0500

(1)

No agreement concerning division:

Division of partnership will be equal, thus,

=0.5×88000=44000=0.5\times88000=44000

Tom and Jerry will each get $4400.

(2)

According to ration of original investment:

Total Investment,

=88000+120000=208000=88000+120000=208000

Tom will get:

88000208000×88000=37230.77\frac{88000}{208000}\times88000=37230.77

Jerry will get:

120000208000×88000=50769.23\frac{120000}{208000}\times88000=50769.23

(3)

Rate of 8% on original investment:

Tom,=8100×88000=7040=\frac{8}{100}\times88000=7040

Jerry,=8100×120000=9600=\frac{8}{100}\times120000=9600

Remainder divided in the ration 2:1

Remainder=88000(7040+9600)=88000-(7040+9600)

=71360=71360

For Tom:

=23×71360=47573.33=\frac{2}{3}\times71360=47573.33

For Jerry:

=13×71360=23786.67=\frac{1}{3}\times71360=23786.67

Total share:

Tom:=7040+47573.33=54613.33=7040+47573.33=54613.33

=$54613.33

Jerry:

=9600+23786.67=33386.67=9600+23786.67=33386.67

=$33386.67


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