Phil Haddox and Russ French have decided to form a partnership. They have agreed that Haddox is to..

 
   

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Phil Haddox and Russ French have decided to form a partnership. They have agreed that Haddox is to invest $120,000 and that French is to invest $180,000. Haddox is to devote full time to the business, and French 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 $60,000 to Haddox and $30,000 to French, and the remainder equally.f. Plan (e), except that Haddox is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the salary allowances.InstructionsFor each plan, determine the division of the net income under each of the following assumptions: (1) net income of $150,000 and (2) net income of $90,000. Present the data in tabular form, using the following columnarheadings:
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Phil Haddox and Russ French have decided to form a