Lawford and Delgado have decided to form a partnership

They #8841
Lawford and Delgado have decided to form a partnership. They have agreed that Lawford is to
invest $90,000 and that Delgado is to invest $30,000. Lawford is to devote one-half time to the
business and Delgado is to devote full time. The following plans for the division of income are
being considered:a. Equal division.b. In the ratio of original investments.c. In the ratio of time
devoted to the business.d. Interest of 12% on original investments and the remainder equally.e.
Interest of 12% on original investments, salary allowances of $28,000 to Lawford and $60,000
to Delgado, and the remainder equally.f. Plan (e), except that Delgado is also to be allowed a
bonus equal to 20% of the amount by which net income exceeds the total salary
allowances.InstructionsFor each plan, determine the division of the net income under each of
the following assumptions: (1) Net income of $90,000 (2) Net income of $135,000. Present the
data in tabular form, using the following columnar headings:
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Lawford and Delgado have decided to form a partnership They

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