# Rex Baker and Ty Farney are forming a partnership to which Baker will devote three-fourth time and Farney will devote...

**jend**

Rex Baker and Ty Farney are forming a partnership to which Baker will devote three-fourth time and Farney will devote full time. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments, which they have agreed will be $40,000 for Baker and $60,000 for Farney; (b) in proportion to the time devoted to the business; (c) a salary allowance of $1,750 per month to Farney and the balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of $1,750 per month to Farney, 10% interest on their initial capital investments, and the balance shared equally. The partners expect the business to perform as follows: year 1, $19,000 net loss; year 2, $47,500 net income; and year 3, $79,167 net income.
Required:
Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of the four plans being considered. (Loss amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)
Year 1
Income (Loss)
--------------------------------------------------------------------------------
Sharing Plan Baker Farney
(a) $ $
(b) $ $
(c) $ $
(d) $ $
--------------------------------------------------------------------------------
Year 2
Income (Loss)
--------------------------------------------------------------------------------
Sharing Plan Baker Farney
(a) $ $
(b) $ $
(c) $ $
(d) $ $
--------------------------------------------------------------------------------
Year 3
Income (Loss)
--------------------------------------------------------------------------------
Sharing Plan Baker Farney
(a) $ $
(b) $ $
(c) $ $
(d) $ $

- 9 years ago
- 3

**Answer(2)**

Purchase the answer to view it

NOT RATED

- bakerfarney.doc

Purchase the answer to view it

NOT RATED

- partnership.xls

**Bids(0)**

**other Questions(10)**

- If 10.0g of carbon is combined with 26.6g of oxygen to produce carbon dioxide, what mass in grams, of CO2...
- 150 cotton balls. The mass sof each cotton ball is 3 grams. What is the total mass of...
- Task description A list with information about movies needs to be organised in a database. The list contains the following data, for...
- A steel pipe 14 ft long is suspended horizontally from its ends steel wires 5.0 m long. The CoG is situated 30 inches from left side and the bamboo pole weighs 5.6 kg. A mass of 18 lb is hanging 5 ft from the right end of the pole. The wires have radii of
- A=1/2bh make a suject
- solve system of equation by addition: 4c-3d=-20 7c+2d=-6
- What is the height of a cylindrical prism whose volume is 141.3 cubic meters and whose diameter is 10 meters?
- When ethane is reacted with oxygen in the air, the products are carbon dioxide and water. This process requires ______...
- Prove the second associative law from Table 1 by showing that if A, B, and C are sets, then A ∩...
- ECONOMICS QUESTION