Candace Hassell and Abby Lawson formed a partnership, investing $424,000 and $212,000, respectively.

Independent assumptions:
(a) no agreement concerning division of net income;
(b) divided in the ratio of original capital investment;
(c) interest at the rate of 12% allowed on original investments and the remainder divided in the ratio of 2:3;
(d) salary allowances of $101,000 and $139,000, respectively, and the balance divided equally;
(e) allowance of interest at the rate of 12% on original investments, salary allowances of $101,000 and $139,000, respectively, and the remainder divided equally.

Determine Hassell’s and Lawson’s participation in the year’s net income of $288,000 under each of the independent assumptions above.

Hassell Lawson
(a) $ Incorrect. The correct answer is 144,000.X $ Incorrect. The correct answer is 144,000.X
(b) $ $
(c) $ $ Incorrect. The correct answer is 152,448.X
(d) $ $
(e) $ $ Incorrect. The correct answer is 150,280.X