Basu, Pownall, and Barton operate a partnership with a complex profit and loss sharing agreement. The average capital balances for Basu, Pownall and Barton on December 31, 2015 are $120,000, $270,000, and $340,000, respectively. A 6% interest allocation is provided to each partner based on their average capital balance on December 31, 2015. Basu and Pownall receive salary allocations of $40,000 and $50,000, respectively. If the partnerships net income is above $160,000, after the salary allocations are considered (but before the interest allocations are considered), Barton will receive a bonus of 10% of the income pre-salary and interest, but net of the bonus. ( Hint: Bonus = b% x (NI Bonus)). All residual income is allocated in the ratio of 2:2:6 to Basu, Pownall, and Barton, respectively.

Required (show all your calculations): 1. Assume that the partnerships net income for 2015 is $330,000. What is the TOTAL partnership RESIDUAL INCOME allocation in 2015? (2 points)

2. Assume that the partnerships net income for 2015 is $330,000. What will the total partnership profit allocation be for Basu in 2015? (3 points)

3. Assume that the partnerships net income for 2015 is $330,000. What will the total partnership profit allocation be for Pownall in 2015? (3 points)

4. Assume that the partnerships net income for 2015 is $330,000. What will the total partnership profit allocation be for Barton in 2015? (3 points)

5. Assume that the partnership incurs a net loss of $26,200 in 2015. What is the TOTAL partnership RESIDUAL INCOME allocation in 2015? (2 points)

6. Assume that the partnership incurs a net loss of $26,200 in 2015. What will the total partnership profit allocation be for Basu in 2015? (3 points)

7. Assume that the partnership incurs a net loss of $26,200 in 2015. What will the total partnership profit allocation be for Pownall in 2015? (2 points)

8. Assume that the partnership incurs a net loss of $26,200 in 2015. What will the total partnership profit allocation be for Barton in 2015? (2 points)