1. Dante, Milton, and Cervantes formed a partnership and agreed to share profits in a 3:1:2 ratio after recognition of 5% interest on average capital balances and salary allowances of $45,000 to Milton and S36,000 to Cervantes. Average capital balances were as follows: Dante Milton Cervantes 300,000 240,000 180,000 REQUIRED: Compute the net income (loss) allocated to each partner assuming the partnership incurred a $27,000 net loss, 2. Joey and Rachel are partners whose capital balances are $400,000 and $300,000 and who share profits 3:2. Due to a shortage of cash, Joey and Rachel agree to admit Ross to the firm. REQUIRED: a. Ross invests $200,000 for a 1/4 interest. No Goodwill is recorded. b. Ross invests $300,000 for a 1/4 interest. Goodwill is to be recorded. c. Ross purchases a 1/4 interest in the firm, with 1/4 of the capital of each old partner transferred to the account of the new partner. Ross pays the partners cash of $250,000, which they divide between themselves