134 Part 3) Thinking and Inquiry 1) A B, and formed a partnership When applicable the partnership agreement states that salaries are to be paid first interest on partners' capital second, with the remainder to be divided equally. The cases below are independent 1 Net loss for the year was $30.000. Neither salaries nor interest on capital balances is to be paid Partner A's share of net loss is S [10] 2. Net income for the year was $75,000. The partnership agreement provides for salaries of $10,000 for A and $20,000 for B, with no interest paid on capital balances Partner A's share of net income is $ 3. Net income for the year was $50,000. The partnership agreement makes no provision for salaries but provides for 5% interest on January 1 capital balances. These balances were $40,000, $30,000, and $30,000 for A, B, and C, respectively Partner A's share of net income is 5 4. Net income for the year was $46,000. The partnership agreement provides for a $10,000 salary for B and 10% interest on January 1 capital balances. These balances were $20,000 for each partner on January 1 Partner A's share of net income is $_ 5. Net income for the year was $1,800. The partnership agreement makes no provision for salaries but provides for 12% interest on January 1 capital balances. These balances were $10,000 for A and $20,000 for B and C Partner A's share of net income is $_ 2) a) Laura and Sally are partners who share profits 60% and 40%. Their capital balances were both $60,000 before Karen was admitted to the partnership. Karen paid $70.000 each to Laura and Sally for purchase of a 25% interest in the partnership. After her admission to the partnership Karen will have a capital balance of $_ [12] b) Jim and Mary are partners who share profits 60% and 40%. Their capital balances were both $60,000 before Betty was admitted to the partnership. Betty contributed $100,000 in cash to the partnership for a 30% interest. After Betty is admitted to the partnership. Jim will have a capital balance of $_ c) Jerry and Sundar are partners who share profits 40% and 60% Before Bill was admitted to the partnership