Ramer and Knox began a partnership by investing $60,000 and $80,000, respectively. The partners agreed to share net income and loss by granting 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.
1. Determine the partners' shares of Ramer and Knox given a first-year net income of $98,800.
2. Determine the partners' shares of Ramer and Knox given a first-year net loss of $16,800.