Answer:
Comb's share will be = $12,180
Stratton's share will be = $31,320
Step-by-step explanation:
Given:
Comb's investment in the partnership = $140,000
Stratton's investment in the partnership = $360,000
The net income is shared in proportions of their investment.
Net income last year = $43,500
To find the share of each partner of the net income.
Solution:
Ratio of the investments of Comb to Stratton = (Simplest ratio)
Thus, the investments must be shared in the ratio of 7 : 18
Let Comb's share in dollars be =
Then, Stratton's share in dollars =
Total net income can be given as =
Net income = $43,500
So, we have:
Dividing both sides by 25.
∴
So, Comb's share will be =
Stratton's share will be =
