Candace Hassell and Abby Lawson formed a partnership, investing $240,000 and $80,000, respectively.
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 15% allowed on original investments and the remainder divided in the ratio of 2:3;
(d) salary allowances of $50,000 and $70,000, respectively, and the balance divided equally;
(e) allowance of interest at the rate of 15% on original investments, salary allowances of $50,000 and $70,000, respectively, and the remainder divided equally.
Determine Hassell's and Lawson's participation in the year's net income of $200,000 under each of the independent assumptions presented in the exercise.