Tracy and Dennis are partners in a business. Tracy's original capital contribution was $40,000, and Dennis's was $60,000. They agreed to share profits and losses as follows:
$\begin{array}{lrr}
&{\text { Tracy }} &{\text { Dennis }} \
\text { As salaries } & \$ 36,000 & \$ 48,000 \
\text { As interest on original capital } & 10 \% & 10 \% \
\text { Remaining profits or losses } & 2 / 3 & 1 / 3 \
\end{array}$ Calculate each partner's share of profits and losses, assuming (a) the profit was $100,000, (b) the profit was $70,000, and (c) the loss was $8,000.

Question

Tracy and Dennis are partners in a business. Tracy's original capital contribution was $40,000, and Dennis's was $60,000. They agreed to share profits and losses as follows:
 $\begin{array}{lrr} 
&{\text { Tracy }} &{\text { Dennis }} \
\text { As salaries } & \$ 36,000 & \$ 48,000 \
\text { As interest on original capital } & 10 \% & 10 \% \
\text { Remaining profits or losses } & 2 / 3 & 1 / 3 \
\end{array}$ Calculate each partner's share of profits and losses, assuming (a) the profit was $100,000, (b) the profit was $70,000, and (c) the loss was $8,000.

Quizplus · Accepted Answer

The Answer of Tracy and Dennis are partners in a business. Tracy's original capital contribution was $40,000, and Dennis's was $60,000. They agreed to share profits and losses as follows:
 $\begin{array}{lrr} 
&{\text { Tracy }} &{\text { Dennis }} \
\text { As salaries } & \$ 36,000 & \$ 48,000 \
\text { As interest on original capital } & 10 \% & 10 \% \
\text { Remaining profits or losses } & 2 / 3 & 1 / 3 \
\end{array}$ Calculate each partner's share of profits and losses, assuming (a) the profit was $100,000, (b) the profit was $70,000, and (c) the loss was $8,000.

Tracy and Dennis Are Partners in a Business Calculate Each Partner's Share of Profits and Losses, Assuming (A)