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Stewart and Brooke Form a Partnership

Question 51

Essay

Stewart and Brooke form a partnership.Stewart invests $80,000 and Brooke invests $120,000.If there are any profits or losses they will share them as follows:
They will each receive a salary of $25,000.
Any remaining amount will be allocated ¾ to Brooke and ¼ to Stewart.
(1)If the partnership income for the year is $115,000,what amount will be allocated to Brooke?
(2)If the partnership income for the year is $125,000,what amount will be allocated to Stewart?
(3)If the partnership income for the year is $45,000,what amount will be allocated to Stewart and what amount to Brooke?

Correct Answer:

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(1)Brooke will receive $73,750...

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