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V Check My Work

Set up a column for each partner and a total column.

a$.$ Determine the distribution of income and losses in the absence of a partnership agreement.

b$.$ Use the ratio of the partner's original capital investment to distribute the net income.

c$.$ Use the stated percentage to determine the interest allowance. Distribute the remaining income based on the stated ratio.

d$.$ Assign each partner's stated salary allowance. Distribute the remaining income based on the stated ratio.