Income distribution: Different arrangements. Frank Gatti and Hogan recently i

Income distribution: Different arrangements.

Frank Gatti and Hogan recently invested 530000 each and formed the Apex partnership.

During the first year of operation the business generated a net income of $39000.

Determine the proper division of income among the partners for the following independent cases:

a. Income is divided on the basis of a ratio of the beginning capital investments.

b. Partners are allowed 12% interest on their investments; the remaining profits and losses are allocated on a 6:1:3 basis.

c. Frank and Hogan each receive salary allowances of $24000 per year; the remaining profits and losses are shared equally.