Question

Required Information [The following Information applies to the questions displayed below.) Ramer and Knox began a partnership by Investing $54,000 and $81,000, respectively. The partners agreed to share net Income and loss by granting annual salary allowances of $52,000 to Ramer and $42,000 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: 2a. Determine the partners' shares of Ramer and Knox given a first-year net Income of $100,800. 2b. Determine the partners' shares of Ramer and Knox given a first-year net loss of $18,800. Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Determine the partners' shares of Ramer and Knox given a first-year net income of $100,800. Allocation of Partnership Income Ramer Knox Net Income (loss $ Total 100.800 94.000 6,800 $ 52,000 $ 42.000 Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of the partners Req 2A Req 2B >

Answer 1

Solution 2A:

Allocation of Partnership Income
Particulars	Ramer	Knox	Total
Net Income (Loss)			$100,800.00
Salary allowances	$52,000.00	$42,000.00	$94,000.00
Balance of income (loss)			$6,800.00
Interest allowances	$5,400.00	$8,100.00	$13,500.00
Balance of income (loss)			-$6,700.00
Balance allocated equally	-$3,350.00	-$3,350.00	-$6,700.00
Balance of income (loss)			$0.00
Shares of the partners	$54,050.00	$46,750.00	$100,800.00

Solution 2B:

Allocation of Partnership Income
Particulars	Ramer	Knox	Total
Net Income (Loss)			-$18,800.00
Salary allowances	$52,000.00	$42,000.00	$94,000.00
Balance of income (loss)			-$112,800.00
Interest allowances	$5,400.00	$8,100.00	$13,500.00
Balance of income (loss)			-$126,300.00
Balance allocated equally	-$63,150.00	-$63,150.00	-$126,300.00
Balance of income (loss)			$0.00
Shares of the partners	-$5,750.00	-$13,050.00	-$18,800.00