Exercise 1B - Allocation of Partnership Profit or Loss The Newman, LLP partnership is comprised of four general partners; Elaine, Jerry, George, & Kramer. The partnership agreement calls for profits of the partnership to be allocated as per the following: 1) Jerry and Kramer are to receive 5% bonuses on partnership profit if there is a profit 2) Each partner is to receive 20% interest on their capital balance at year-end. 3) Each partner is to receive a salary of $25,000 if there is a profit, $5,000 if there is not a profit. 4) Any partner that withdrew less than $50,000 from their capital account during the year is to receive a $10,000 bonus 5) Any remaining profit or loss is to be allocated to Elaine, Jerry, George, & Kramer in the ratio of 4:2:3:1 respectively Elaine Jerry George Kramer Year-End Capital Balances $150,000 $50,000 $75,000 $200,000 Total Annual Capital Withdrawals $40,000 $60,000 $10,000 $55,000 Prepare a distribution of income schedule for the partnership if there was a 20x1 net income of $500,000 by entering the proper amounts in the gray-shaded cells. If there is no amount to be entered in a particular cell, type the word "zero". Do not enter a "0". When correct, the cells will change color to a light green. Do not copy / copy & paste formulas! Elaine Jerry George Kramer Total Profit Bonus Interest on Capital Salary Withdrawal Bonus Sub-Total Remainder to be Allocated Total Prepare a distribution of income schedule for the partnership if there was a 20x1 net income of $100,000 by entering the proper amounts in the gray-shaded cells. If there is no amount to be entered in a particular cell, type the word "zero". Do not enter a "0". When correct, the cells will change color to a light green. Do not copy / copy & paste formulas! Elaine Jerry George Kramer Total Profit Bonus Interest on Capital Salary Withdrawal Bonus Sub-Total Remainder to be Allocated Total Prepare a distribution of income schedule for the partnership if there was a 20X1 net loss of by entering the proper amounts in the gray-shaded cells. If there is no amount to be entered in a particular cell, type the word "zero". Do not enter a "0". When correct, the cells will change color to a light green. Do not copy / copy & paste formulas! Elaine Jerry George Kramer Total Profit Bonus Interest on Capital Salary Withdrawal Bonus Sub-Total Remainder to be Allocated Total