Oscar and Elmo have formed a partnership and invested $50,000 and $70,000, respectively. They have agreed to

Question:

Oscar and Elmo have formed a and invested $50,000 and $70,000, respectively. They have agreed to share profits as follows:
a. Oscar is to receive a payment of $25,000 for his service and Elmo is to receive a payment of $15,000 for his service.
b. $12,000 is to be allocated according to their original capital contributions to the The remainder is to be allocated 5:4 respectively.
Assuming that the business had a loss of $11,000, allocate the loss to Oscar and Elmo.
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...