Combs and Stratton invested $140,000 and $360,000, respectively, in a partnership. They agreed to share net income in proportion to their investments. If the partnership's net income last year was $43,500, how much was each partners share of the net income?

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jitumahi456 jitumahi456 · Answer 1 · 2020-02-01T05:37:46+01:00

Answer:

Comb's share will be = $12,180

Stratton's share will be = $31,320

Step-by-step explanation:

Given:

Comb's investment in the partnership = $140,000

Stratton's investment in the partnership = $360,000

The net income is shared in proportions of their investment.

Net income last year = $43,500

To find the share of each partner of the net income.

Solution:

Ratio of the investments of Comb to Stratton = [tex]\frac{140,000}{360,000}[/tex][tex]= \frac{14}{36}=\frac{7}{18}[/tex] (Simplest ratio)

Thus, the investments must be shared in the ratio of 7 : 18

Let Comb's share in dollars be = [tex]7x[/tex]

Then, Stratton's share in dollars = [tex]18x[/tex]

Total net income can be given as = [tex]7x+18x=25x[/tex]

Net income = $43,500

So, we have:

[tex]25x=43,500[/tex]

Dividing both sides by 25.

[tex]\frac{25x}{25}=\frac{43,500}{25}[/tex]

∴ [tex]x=1740[/tex]

So, Comb's share will be = [tex]7\times 1740 = \$12,180[/tex]

Stratton's share will be = [tex]18\times 1740 = \$31,320[/tex]