Question

Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. The partners agreed to share net income and loss by giving annual salary allowances of $50,000 to Ramer and $40,000 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Required: 1. Determine each partner's share given a first-year net income of $98,800. 2. Determine each partner's share given a first-year net loss of $16,800. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine each partner's share given a first-year net income of $98,800. Total 98,800 $ Allocation of Partnership Income Ramer Knox Net Income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of the partners .

Answer 1

Answer :-

		$60,000	$90,000
2A.Allocation of partnership income
		Ramar	Knox	Total
Net income or( loss)				$98,000
Salary allowance		$50,000	$40,000	$90,000
Balance income or (loss)				$8,000
Interest Alowance		$6,000	$9,000	$15,000
Balance income or (loss)				-$7,000
Balance allocated rqually		-$3,500	-$3,500
shares of partner		$52,500	$45,500
		$60,000	$90,000
2B.Allocation of partnership incomeor (loss)
		Ramar	Knox	Total
Net income or( loss)				-$16,800
Salary allowance		$50,000	$40,000	$90,000
Balance income or (loss)				-$106,800
Interest Alowance		$6,000	$9,000	$15,000
Balance income or (loss)				-$121,800
Balance allocated rqually		-$62,700	-$62,700
shares of partner		-$6,700	-$13,700