document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=885237>Question 885237</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Lawford and Delgado have decided to form a partnership. They have agreed that Lawford is to invest $90,000 and that Delgado is to invest $30,000. Lawford is to devote one-half time to the business and Delgado is to devote full time. The following plans for the division of income are being considered:.<BR>\n" );
document.write( "a.Equal division.<BR>\n" );
document.write( "b.In the ratio of original investments.<BR>\n" );
document.write( "c.In the ratio of time devoted to the business.<BR>\n" );
document.write( "d.Interest of 12% on original investments and the remainder equally.<BR>\n" );
document.write( "e.Interest of 12% on original investments, salary allowances of $28,000 to Lawford and $60,000 to Delgado, and the remainder equally.<BR>\n" );
document.write( "f.Plan (e), except that Delgado is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances.\r<BR>\n" );
document.write( "\n" );
document.write( "(1) (2) <BR>\n" );
document.write( "  $90,000 $135,000 <BR>\n" );
document.write( "Plan   Lawford   Delgado   Lawford   Delgado <BR>\n" );
document.write( "a.   $    $    $    $  <BR>\n" );
document.write( "b.   $    $    $    $  <BR>\n" );
document.write( "c.   $    $    $    $  <BR>\n" );
document.write( "d.   $    $    $    $  <BR>\n" );
document.write( "e.   $    $    $    $  <BR>\n" );
document.write( "f.   $    $    $    $  <BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #562888 by </B><A HREF=/tutors/aboutme.mpl?userid=urka><B>urka(1)</B></A><img src=\"/images/stars/iconNewId_16x16.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=urka><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=562888\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> $90,000 $135,000<BR>\n" );
document.write( "Plan Lawford Delgado Lawford Delgado<BR>\n" );
document.write( "a. .................................................... $54,000 $54,000 $ 75,000 $ 75,000<BR>\n" );
document.write( "b. .................................................... 81,000 27,000 112,500 37,500<BR>\n" );
document.write( "c. .................................................... 36,000 72,000 50,000 100,000<BR>\n" );
document.write( "d. .................................................... 58,800 49,200 79,800 70,200<BR>\n" );
document.write( "e. .................................................... 42,800 65,200 63,800 86,200<BR>\n" );
document.write( "f. .................................................... 41,600 66,400 58,400 91,600<BR>\n" );
document.write( "Details<BR>\n" );
document.write( " $108,000 $150,000<BR>\n" );
document.write( " Dyer Salinas Dyer Salinas<BR>\n" );
document.write( "a. Net income (1:1) ........................ $54,000 $54,000 $ 75,000 $ 75,000<BR>\n" );
document.write( "b. Net income (3:1) ........................ $81,000 $27,000 $112,500 $ 37,500<BR>\n" );
document.write( "c. Net income (1:2) ........................ $36,000 $72,000 $ 50,000 $100,000<BR>\n" );
document.write( "d. Interest allowance ..................... $14,400 $ 4,800 $ 14,400 $ 4,800<BR>\n" );
document.write( "Remaining Income (1:1)............ 44,400 44,400 65,400 65,400<BR>\n" );
document.write( "Net income................................. $58,800 $49,200 $ 79,800 $ 70,200<BR>\n" );
document.write( "e. Interest allowance ..................... $14,400 $ 4,800 $ 14,400 $ 4,800<BR>\n" );
document.write( "Salary allowance ....................... 32,000 64,000 32,000 64,000<BR>\n" );
document.write( "Excess of allowances over<BR>\n" );
document.write( "income (1:1) ........................... (3,600) (3,600)<BR>\n" );
document.write( "Remaining income (1:1)............ 17,400 17,400<BR>\n" );
document.write( "Net income................................. $42,800 $65,200 $ 63,800 $ 86,200<BR>\n" );
document.write( "f. Interest allowance ..................... $14,400 $ 4,800 $ 14,400 $ 4,800<BR>\n" );
document.write( "Salary allowance ....................... 32,000 64,000 32,000 64,000<BR>\n" );
document.write( "Bonus allowance....................... 2,4001<BR>\n" );
document.write( " 10,8002<BR>\n" );
document.write( "Excess of allowances over<BR>\n" );
document.write( "income (1:1) ........................... (4,800) (4,800)<BR>\n" );
document.write( "Remaining income (1:1)............ 12,000 12,000<BR>\n" );
document.write( "Net income................................. $41,600 $66,400 $ 58,400 $ 91,600 </SPAN>\n" );
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