X and Y agree to form a partnership. X contributes 50,000 in assets and devotes one-half time to partnership while Y contributes 20,000 in cash and devotes full time to the firm. How will the partners share the profit?

Since the partners do not establish a specific profit sharing ratio in their agreement, their profits and losses must be divided equally according to standard partnership rules. The differences in their capital contributions and time devoted are irrelevant when no contrary contract exists. Therefore, the partners share the profit in a ratio of 1:1.

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