Exercise 11-5 Profit allocation in a partnership LO3 Dallas and Weiss formed a partnership to manage rental properties, by investing $189,000 and $231,000, respectively. During its first year, the partnership recorded profit of $524,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit. Profit Share to Share to Weiss Dallas $ 262,000 $ 262,000 $ 524,000 Saved Total Share to Weiss b. The partners agreed to share profits and losses in proportion to their initial investments. Share to Dallas Total

Exercise 11-5 Profit allocation in a partnership LO3 Dallas and Weiss formed a partnership to manage rental properties, by investing $189,000 and $231,000, respectively. During its first year, the partnership recorded profit of $524,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners falled to agree on a method of sharing profit. b. The partners agreed to share profits and losses in proportion to their initial investments. c. The partners agreed to share profit by allowing a $157,000 per year salary allowance to Dallas, an $87,000 per year salary allowance to Weiss, 10\% interest on their inital investments, and sharing the balance equally. (Leave no cell blank. Enter " 0 " when the onswer is zero.) Exercise 11-5 Profit allocation in a partnership LO3 Dallas and Weiss formed a partnership to manage rental properties, by investing $189,000 and $231,000, respectively. During its first year, the partnership recorded profit of $524,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners falled to agree on a method of sharing profit. b. The partners agreed to share profits and losses in proportion to their initial investments. c. The partners agreed to share profit by allowing a $157,000 per year salary allowance to Dallas, an $87,000 per year salary allowance to Weiss, 10\% interest on their inital investments, and sharing the balance equally. (Leave no cell blank. Enter " 0 " when the onswer is zero.)