In December of 2018, Ms

question 19

Essay

In December of 2018, Ms.Havisham and Pip form a wedding planning business.Each of them 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, 2019.For the month of December 2018, the partnership made $3,000 after Ms.Havisham's guaranteed payment of $1,000.From January through September of 2019, the partnership made a net income of $65,000 after a $1,500 per month guaranteed payment to Ms.Havisham.​
a.How much income should Ms.Havisham report for 2018?
b.How much income should Ms.Havisham report for 2019?

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Definitions:

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, where new oceanic crust is created by volcanic activity.

Linear Island Chain

A series of islands arranged along a straight or nearly straight line, often formed by volcanic activity along a submarine ridge.

Fracture Zone

An area in oceanic or continental crust characterized by cracks and faults due to tectonic stresses, often associated with earthquake activity.

Plate Boundary

The edges where tectonic plates meet, which can be sites of earthquakes, volcanoes, and mountain building.