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Carl and David have capital balances of $100,000 and $300,000 respectively. Carl devotes full time and David one-half time to the business. Determine the division of $120000 of net income under each of the following assumptions:

(a) No agreement as to division of net income.

(b) In ratio of capital balances.

(d) Interest of 10% on capital balances and remainder in ratio 3:2

(e) Interest of 10% on capital balances, salaries of $45,000 to Carl and $60,000 to David, and the remainder equally

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M957951

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