Question

Help Save & Exit Submit HW3 CH12 Check my work 4 The following information applies to the questions displayed below! Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively, Part 3 of 3 Exercise 12-5 Part 3 Income allocation in a partnership LO P2 178 points 3. The partners agreed to share income by giving a $50,000 per year salary allowance to Ramet, a $40,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $160,000. (Enter all allowances as positive values. Enter losses as negative values.) 02:24:26 Ramer Knox Total $ 160.000 90.000 9.000 $ 50,000 $ 40 000 9,000 Not Income Salary allowances interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income Shares of the partners 0 References $ 50.000 $ 49 000 4 of 14 < Prev Next > M GE NA La No ΕΙ

Answer 1

Correct Answer:

	Ramer	Knox	Total
Net Income (loss)			$ 160,000
Salary Allowance	$ 50,000	$ 40,000	$ 90,000
Balance of Income (Loss)			$ 70,000
Interest Allowance	$ 6,000	$ 9,000	$ 15,000
Balance of Income (Loss)			$ 55,000
Balance Allocated Equally	$ 27,500	$ 27,500	$ 55,000
Balance of Income (Loss)			$ -
Shares of The Partners	$ 83,500	$ 76,500

End of Answer.

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