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At CKR Accounting, 3 partners formed a partnership and made the following investments: Rishi $30,000 Ketchum $40,000 Chan $50,000 Rishi will work full time, and
At CKR Accounting, 3 partners formed a partnership and made the following investments:
Rishi | $30,000 |
Ketchum | $40,000 |
Chan | $50,000 |
Rishi will work full time, and Ketchum and Chan will work part-time (50%). In the partnership agreement, they have agreed to allocate income or loss as follows: the first $100,000 on capital investments, and the next $100,000 based on service. Everything else will be allocated equally. In the past fiscal year, the business incurred a net loss of $95,000. How much loss is allocated to each partner?
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