Exercise 12-5 Income allocation in a partnership LOP2 Kramer and Knox began a partnership by investing $60,000 and $80,000, respectively. The partners agreed to share net income and loss by granting annual salary allowances of $50,000 to Kramer and $40,000 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally 1. Determine the partners' shares of Kramer and Knox given a first-year net income of $98,800. (Enter all allowances as positive values. Enter losses as negative values.) Allocation of Partnership Income Total Kramer Knox Net Income (loss) 98,800 Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of the partners