Seth and Rachel have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investments at 15%; salary allowances of $24,000 and $20,000, respectively; and the remainder to be divided equally. How much of the net income of $90,000 is allocated to Seth?

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First, calculate the interest on the original investments: Seth: $50,000 * 15% = $7,500 Rachel: $100,000 * 15% = $15,000 Then, add the salary allowances: Seth: $7,500 + $24,000 = $31,500 Rachel: $15,000 + $20,000 = $35,000 The total allocated so far is $31,500 + $35,000 = $66,500. The remainder of the net income to be divided equally is $90,000 - $66,500 = $23,500. Divided equally, each gets $11,750. Adding this to Seth's allocated amount: $31,500 + $11,750 = $43,250.

Seth and Rachel Have Original Investments of $50,000 and $100,000