11 Arthur Bob and Clark have a partnership but their agreeme

11. Arthur, Bob, and Clark have a partnership, but their agreement is silent as to the sharing of profits Arthur\'s capital contribution is $12,000; Bob\'s capital contribution is 6,000; Clark\'s contribution is a computer and other equipment valued at $3,400. How would the partner\'s divide a $36,000 profit? Please explain your answer fully. (10 points)

Solution

In Partnership, profits are shared as per partnership agreement.In Case ,Partnership agreemnt is silent on profit sharing,Profit is divided equally. So, in this question, when partneship agreement is silent on profit sharing, $ 36,000 profit will be divided equally in three partners. Arthur\'s Share of Profit = $ 36,000 x 1/3 = $ 12,000 Bob\'s Share of profit = $ 36,000 x 1/3 = $ 12,000 Clark\'s share of profit = $ 36,000 x 1/3 = $ 12,000 Total $ 36,000