Tim Snyder and Jay Wise have decided to form a

Tim Snyder and Jay Wise have decided to form a partnership. They have agreed that Snyder is
to invest $30,000 and that Wise is to invest $40,000. Snyder is to devote full time to the
business, and Wise is to devote one-half time. The following plans for the division of income are
being considered:a. Equal division.b. In the ratio of original investments.c. In the ratio of time
devoted to the business.d. Interest of 10% on original investments and the remainder in the
ratio of 3:2.e. Interest of 10% on original investments, salary allowances of $34,000 to Snyder
and $17,000 to Wise, and the remainder equally.f. Plan (e), except that Snyder is also to be
allowed a bonus equal to 20% of the amount by which net income exceeds the total salary
allowances.InstructionsFor each plan, determine the division of the net income under each of
the following assumptions:(1) Net income of $210,000 and (2) Net income of $84,000. Present
the data in tabular form, using the following columnarheadings:
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Tim Snyder and Jay Wise have decided to form a
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