Fillmore,Willis,and Polk form a partnership.Fillmore's capital contribution to the firm is $10,000.Willis and Polk contribute $5,000 each.The parties make no express agreement concerning how profits are to be divided,but they agree to share losses as follows: Fillmore,40%,Willis and Polk,30% each.During the partnership's first year,the business has a profit of $30,000.What is Fillmore's share of the profit?

Question

Quizplus · Accepted Answer

A partner is not ordinarily entitled to salary or wages.The compensation is presumed to be the partner's share of profits.This is true even if one partner spends much more time than another on partnership business.The same principle applies to rent to a partner for use of the partner's property and to interest on a capital contribution.

Fillmore,Willis,and Polk Form a Partnership