Tim Snyder and Jay Wise have decided to form a partnership. They have agreed that Snyder is to invest $30000…

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Tim Snyder and Jay Wise have decided to form a partnership. They have agreed that Snyder is to invest $30000 and that Wise is to invest $40000. 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 34000 to Snyder and 17000 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. For each plan determine the division of the net income under each of the following assumptions: (1) net income of 210000 and (2) net income 84000.

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