Question

"Wheadon, Davis, and Singer formed a partnership with Wheadon contributing $60,000, Davis contributing $50,000 and Singer contributing $40,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $75,000 for its first year of operation, what amount of income (rounded to the nearest thousand) would be credited to Singer's capital account?"

Answer 1

Wheados 30,000

Davis 25,000

Signer 20,000

Step-by-step explanation:

we will calculate each partner participation on the profits.

total capital:

60,000+50,000+40,000 = 150,000

now we calculate each partner income

`net \: income * (capital)/(total)`

we plug the values for each partner

Wheados:

`75000 * (60000)/(150000) = 30000`

Davis:

`75000 * (50000)/(150000) = 25000`

Signer

`75000 * (40000)/(150000) = 20000`