In December of 2019, Ms

question 61

Essay

In December of 2019, Ms. Havisham and Pip form a wedding planning business. They each own 50 percent of the partnership. The partnership establishes a September 30th year-end since most weddings are during the summer. Therefore, the partnership's initial year-end is September 30, 2020. For the month of December 2019, the partnership made a net income of $3,000 after Ms. Havisham's guaranteed payment of $1,000. From January through September of 2020, the partnership made a net income of $65,000 after a $1,500 per month guaranteed payment to Ms. Havisham.
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a. How much income should Ms. Havisham report for 2019?
b. How much income should Ms. Havisham report for 2020?

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Definitions:

Sociobiology

A branch of biology that explains social behavior in all species by considering evolutionary advantages and genetics.

Mores

The essential or characteristic customs and conventions of a community.

Folkways

Informal norms or customs that guide everyday conduct and social interactions within a particular culture or community.

William Sumner

A pioneering American sociologist and economist known for his work on social Darwinism and folkways.