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Ell, Far, and Gar are partners who share profits and losses 20 percent, 20 percent, and 60 percent, respectively, after Ell and Far each receive

Ell, Far, and Gar are partners who share profits and losses 20 percent, 20 percent, and 60 percent, respectively, after Ell and Far each receive a $12,000 salary allowance. Capital balances on January 1, 2011, are as follows: Ell (20%) $69,000 Far (20%) 85,500 Gar (60%) 245,500 During 2011, Gar invested an additional $20,000 in the partnership, and Ell and Far each withdrew $12,000, equal to their salary allowances as provided by the profit- and loss-sharing agreement. The partnership net assets at December 31, 2011, were $481,000.

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