Business partners

Question

Norman and Mark are new business partners agreeing to split costs 50/50. Norman purchases two trucks for $2000 and $300 in parts. Mark spends $100 in gas. Their earnings are in 3 checks-$1147.22, 1185.22, and 1488.84 to total 3821.28. Mark keeps the first check of 1147.22. The other two checks are not cashed. How much money is owed to each business partner and how should the checks be taken care of?

Answer 1

Earnings are irrelevant. They split the costs, which is $2400.

So they each pay $1200. That solves the problem as stated.

What happens after that is a matter of speculation.

But for fun, giggles, and grins keep reading.....

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Since Mark kept the check for 1147.22 he is now at a loss

of 1147.22 - 1200 = 52.73   or  -52.73 in the ledger.

 

BUT... there are still two live checks left that remain un-cashed worth

2674.06. Out of this, we need to get Mark out of the hole

and pay off Norman's share. So that's 52.73 + 1200 = 1252.73

they will not see. 2674.06 - 1252.73 = 1421.33 to split between

the both of them. IF they split the profits evenly (the problem does

not sat that ) they each get 710.66 and  throw the last penny in the fountain. 

But again, this pure speculation...