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Michael has operated a very successful hair salon for the past 7 years. One of his best customers, Jesse, would like to get involved, and they have had several conversations about forming a partnership. They have asked you to provide some guidance about how to share in the profits and losses. Michael plans to contribute the assets from his salon, which have been appraised at P500,000. Jesse will invest cash of P250,000. Assume the salon will earn a profit of $120,000. Instructions: 1. What division of profits would you recommend to Michael and Jesse? *
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