Asked by elizabeth lugones on May 19, 2024
Verified
A partnership agreement provides that half of the annual profit be distributed in proportion to each partner's investment in the partnership, and that the other half be distributed in proportion to the total number of hours that each partner worked in the business during the year. How should the most recent year's profit of $84,780 be allocated if the amounts invested by Huey, Dewey, and Louie are $70,000, $30,000, and $45,000, and their hours of work for the year were 425; 1,680; and 1,440, respectively?
Partnership Agreement
A legal document that outlines the terms and conditions among business partners regarding their business engagement.
Annual Profit
The amount of money a business earns in one year after all expenses have been deducted from its total revenue.
Investment
Allocating monetary assets with the aim of achieving returns or generating revenue.
- Distribute profits or bonuses among individuals according to specified ratios or agreements.
Verified Answer
MB
marie barholereMay 23, 2024
Final Answer :
$25,546.16 to Huey; $28,859.26 to Dewey; $30,374.59 to Louie
Learning Objectives
- Distribute profits or bonuses among individuals according to specified ratios or agreements.