Problem 2: Kramer, George, and Jerry are partners. The partnership agreement indicates they
share in profits and losses as follows:
	1	Kramer and George receive salaries of $40,000 and $50,000, respectively
	2	Kramer and Jerry each receive a bonus of 10% of net income in excess
		of $200,000
	3	All partners receive interest of 8% on their weighted average capital balance.
		Distributions in excess of $6,000 are considered a reduction of capital for the
		purposes of calculating interest.
	4	Jerry receives a bonus of 4% of gross profit in excess of $750,000
	5	The remainder is allocated in a 2:1:2 ratio for Kramer, George, and Jerry respectively
	Capital:
		Kramer	George	Jerry
	Beginning	90,000	75,000	105,000
	April 1	6,000		(5,000)
	June 1	(10,000)	(3,000)
	October 1		(3,000)	10,000
	November 1	(2,000)		(2,000)
	Income Statement information:
	Sales		5,625,000
	COGS		3,610,000
	Operating expenses		1,560,000
Use the information above to prepare a schedule to allocate net income and to prepare a
statement of partnership equity.