Baker Chapter 15

Evaluate 9.1

Textbook Assignments (Baker)

Exercises: E15-1, E15-2, E15-5, E15-8

Problems: P15-13, P15-16

E15-1

1.. A

2. C

3. D

4. B

5. D

E15-2

a. | Distribution of $80,000 income: | | | |

| |     Angela     |    Dawn     |     Total     |

| | | | |

| Profit percentage | 70%  | 30%  | 100%  |

| Average capital | $  50,000  | $ 30,000  | |

| | | | |

| Net income | | | $  80,000  |

| Interest on average capital (10%) | $    5,000  | $  3,000  | (8,000) |

| Salary | 25,000  | 15,000  |    (40,000) |

| Residual income | | | $  32,000  |

| Allocate 70%:30% |     22,400  |  9,600  |...