Final answer:
For the equal division plan, both partners receive an equal share of the net income. In the ratio of original investments plan, the net income is divided proportionally to the partners' investments. In the ratio of time devoted to the business plan, the net income is divided based on the partners' time commitment.
Step-by-step explanation:
Equal division:
Under this plan, Dylan and Demond will split the net income equally, regardless of their investments or time spent on the business. For a net income of $420,000, each partner would receive $210,000. For a net income of $150,000, each partner would receive $75,000.
The ratio of original investments:
With this plan, the net income is divided in proportion to each partner's initial investment. Dylan invested $50,000 and Demond invested $75,000, so the ratio is 2:3. For a net income of $420,000, Dylan would receive $140,000 and Demond would receive $280,000. For a net income of $150,000, Dylan would receive $50,000 and Demond would receive $100,000.
The ratio of time devoted to the business:
With this plan, the net income is divided based on the time each partner spends on the business. Dylan devotes full-time, while Demond devotes half time. This means the ratio is 2:1. For a net income of $420,000, Dylan would receive $280,000 and Demond would receive $140,000. For a net income of $150,000, Dylan would receive $100,000 and Demond would receive $50,000.