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Pacheco and Wager have formed a partnership. During their first year of operations, the partnership earned $130,000. Their-profit-and-loss-sharing agreement states that, first, each partner will
Pacheco and Wager have formed a partnership. During their first year of operations, the partnership earned $130,000. Their-profit-and-loss-sharing agreement states that, first, each partner will receive 25% of their capital balances. The second level is based on services, with $12,000 to Pacheco and $18,000 to Wager. The remainder then will be shared 1:4 between Pacheco and Wager, respectively. Read the requirements. Requirement 1. Calculate the amount of income each partner will receive under their profit-and-loss-sharing agreement assuming Pacheco's capital balance is $91,000 and Wager's capital balance is $91,000. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.) Pacheco Wager Total Net income (loss) Capital allocation: Pacheco Wager Salary allowance: Pacheco Wager Total salary and capital allocation Net income (loss) remaining for allocation Share of remainder: Pacheco Wager Total allocation Net income (loss) remaining for allocation Net income (loss) allocated to the partners
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