ACC 205 Week 4 Assignment Q#3

Income distribution (Different arrangements): 

1. 1.      Income
   distribution: Different arrangements. Frank,
   Gatti, and Hogan recently invested 530,000 each and formed the Apex
   partnership. During the first year of operation, the business gener­ated a net
   income of $39,000. Determine the proper division of income among the partners
   for the following independent cases:
   1. 
      Income is divided on
      the basis of a ratio of the beginning capital invest­ments.

2)Partners are allowed12% interest on their investments; the remaining profits and losses are allocated on a 6:1:3 basis.

3)Frank and Hogan each receive salary allowances of $24,000 per year; the remaining profits and losses are shared equally.

= 521,000/3 = 173,666