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Blue and Red Co. reports net income of $45,000. The partnership agreement provides for annual salaries of $8,000 for Blue and $10,000 for Red and

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Blue and Red Co. reports net income of $45,000. The partnership agreement provides for annual salaries of $8,000 for Blue and $10,000 for Red and interest allowances of $4,000 to Blue and $6,000 to Red. Any remaining income or loss is to be shared 60% by Blue and 40% by Red. a) Determine the amount of net income allocated to each partner

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