Karen Rhea and Wayne Sellevaeg - Distribution of net Income

Karen Rhea and Wayne Sellevaeg decided to form a partnership on July 1, 20-1.

Rhea invested $100,000 and Sellevaeg invested $50,000.

For the fiscal year ended June 30, 20-2, a net income of $90,000 was earned.

Determine the amount of net income that Rhea and Sellevaeg would receive under each of the following independent assumptions:
1. There is no agreement concerning the distribution of net income.
2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally.
3. Rhea and Sellevaeg are to receive a salary allowance of $30,000 and $40,000, respectively. The remaining net income is to be divided equally.
4. Each partner is to receive 10% interest on their original investment. Rhea and Sellevaeg are to receive a salary allowance of $30,000 and $40,000, respectively. The remaining net income is to be divided as follows: Rhea, 40% and Sellevaeg, 60%.