Partner A devotes full time and partner B devotes one-half time to their partnership. If the partnership agreement is silent concerning the division of net income, Partner A will receive a $20,000 share of a net income of $30,000.

Question

Quizplus · Accepted Answer

If the partnership agreement is silent concerning the division of net income, it is assumed that the net income will be divided equally among the partners regardless of the amount of time each partner devotes to the partnership. Therefore, Partner A and Partner B would each receive $15,000 in this scenario.

Partner a Devotes Full Time and Partner B Devotes One-Half