Distribution of Income or Losses: Salaries and Interest E 5.Assume that the partnership agreement of Samuels and Winslow in E 4 states that Samuels and Winslow are to receive salaries of $20,000 and $24,000, respec-tively; that Samuels is to receive 6 percent interest on his capital balance at the beginning of the year; and that the remainder of income and losses are to be shared equally. Calculate the distribution of the income or losses under the fol- lowing conditions: 1. Income totaled $120,000 before deductions for salaries and interest. 2. Income totaled $48,000 before deductions for salaries and interest. 3. There was a loss of $2,000. 4. There was a loss of $40,000 Here is the question E4 E 4. Elijah Samuels and Tony Winslow agreed to form a partnership. Samuels contributed $200,000 in cash, and Winslow contributed assets with a fair market value of $400,000. The partnership, in its initial year, reported net income of $120,000. Calculate the distribution of the first year?s income to the partners under each of the following conditions: 1. Samuels and Winslow failed to include stated ratios in the partnership agreement. 2. Samuels and Winslow agreed to share income and losses in a 3:2 ratio. 3. Samuels and Winslow agreed to share income and losses in the ratio of their original investments. 4. Samuels and Winslow agreed to share income and losses by allowing 10 percent interest on original investments and sharing any remainder equally. This is a part question all in excel. I have attached both excel sheets to the document.

Score: 33% A red asterisk (*) will appear in the column to the right of an incorrect answer. Chapter 17, E 5. 1. Computation: Income (Loss) of Partner Samuels Winslow Total Income for Distribution Distribution of Salaries Samuels Winslow Remaining Income After Salaries Distribution of Interest Samuels ( $200,000 x Remaining Income After Salaries and Interest Equal Distribution of Remaining Income Samuels ( x Winslow ( x Remaining Income Income of Partners 2. $120,000 $20,000 $24,000 ) ) $$120,000 Computation: Income (Loss) of Partner Samuels Winslow $48,000 $24,000 (44,000) $4,000 ) ) ) $- Computation: Income (Loss) of Partner Samuels Winslow Income Distributed $120,000 $20,000 $24,000 ) ) ) 12,000 (44,000) $76,000 (12,000) $64,000 32,000 32,000 $64,000 Computation: Total Income for Distribution Distribution of Salaries Samuels Winslow Remaining Income After Salaries Distribution of Interest Samuels ( $200,000 x Negative Balance After Salaries and Interest Equal Distribution of Negative Balance Samuels ( $8,000 x Winslow ( $8,000 x Remaining Income Income of Partners Income Distributed $20,000 Total Income for Distribution Distribution of Salaries Samuels Winslow Remaining Income After Salaries Distribution of Interest Samuels ( $200,000 x 0.06 Remaining Income After Salaries and Interest Equal Distribution of Remaining Income Samuels ( $64,000 x 0.50 Winslow ( $64,000 x 0.50 Remaining Income Income of Partners 2. (44,000) $76,000 ) Total Income for Distribution Distribution of Salaries Samuels Winslow Remaining Income After Salaries Distribution of Interest Samuels ( $200,000 x Negative Balance After Salaries and Interest Equal Distribution of Negative Balance Samuels ( x Winslow ( x Remaining Income Income of Partners 1. Income Distributed $56,000 Income (Loss) of Partner Samuels Winslow (64,000) $120,000 Income Distributed $48,000 $20,000 $24,000 0.06 ) 12,000 0.50 0.50 ) ) (44,000) $4,000 (4,000) (12,000) $(8,000) (4,000) $28,000 $20,000 8,000 $$48,000 Score: 20% A red asterisk (*) will appear in the column to the right of an incorrect answer. Chapter 17, E 5. (continued) 3. Computation: Income (Loss) of Partner Samuels Winslow Total Loss for Distribution Distribution of Salaries Samuels Winslow Negative Balance After Salaries Distribution of Interest Samuels ( $200,000 x Negative Balance After Salaries and Interest Equal Distribution of Negative Balance Samuels ( x Winslow ( x Remaining Loss Income and Loss of Partners 4. $20,000 $24,000 Income (Loss) of Partner Samuels Winslow 4. $- $20,000 $24,000 (44,000) ) ) ) $- Computation: Income (Loss) of Partner Samuels Winslow Income Distributed $(2,000) $20,000 $24,000 0.06 ) 12,000 0.50 0.50 ) ) (44,000) $(46,000) (29,000) (12,000) $(58,000) (29,000) $3,000 Computation: Total Loss for Distribution Distribution of Salaries Samuels Winslow Negative Balance After Salaries Distribution of Interest Samuels ( $200,000 x Negative Balance After Salaries and Interest Equal Distribution of Negative Balance Samuels ( $96,000 x Winslow ( $96,000 x Remaining Loss Loss of Partners Income Distributed ) ) Computation: Total Loss for Distribution Distribution of Salaries Samuels Winslow Negative Balance After Salaries Distribution of Interest Samuels ( $200,000 x Negative Balance After Salaries and Interest Equal Distribution of Negative Balance Samuels ( $58,000 x Winslow ( $58,000 x Remaining Loss Income and Loss of Partners (44,000) ) Total Loss for Distribution Distribution of Salaries Samuels Winslow Negative Balance After Salaries Distribution of Interest Samuels ( $200,000 x Negative Balance After Salaries and Interest Equal Distribution of Negative Balance Samuels ( x Winslow ( x Remaining Loss Loss of Partners 3. Income Distributed $(5,000) Income (Loss) of Partner Samuels Winslow 58,000 $$(2,000) Income Distributed $(40,000) $20,000 $24,000 0.06 ) 12,000 0.50 0.50 ) ) (44,000) $(84,000) (48,000) (12,000) $(96,000) (48,000) $(16,000) $(24,000) 96,000 $$(40,000)