Carrie and Callie form a partnership in which Carrie contributes $85,000 in assets and agrees to devote half time to the partnership. Callie contributed $50,000 in assets and agrees to devote full time to the partnership. If no additional information is available, how will Carrie and Callie share in the division of income?

Question

Quizplus · Accepted Answer

Without specific information on how profits will be divided, it's common to assume that partners will share profits equally. This is because both capital contribution and time commitment are valuable to the partnership, and without a specified agreement, an equal division is a fair assumption.

Carrie and Callie Form a Partnership in Which Carrie Contributes