PROBLEMS Problem 13-1 (LO 4 Profit allocation based on various factors. Rockford, Skeeba. and Tapinski are partners in a business which manufactures specialty railings. Their profit and loss agreement provides for the allocation of profits and losses as follows: 1. Salaries of $50,000, $40,000, and $55,000 for Rockford, Skeeba, and Tapinski, respectively. 2. Skeeba will receive a bonus equal to 5% of sales in excess of $1,000,000. 3. All partners will receive a bonus of 10% of net income in excess of $150,000 after their bonus. 4. Partners will be allocated interest on their weighted-average capital balance to the extent that it exceeds $50,000. Drawings in excess of annual salaries will be considered a reduction in capital. Interest is computed at the rate of 10%. 5. Remaining profits or losses will be allocated 35%, 25% and 40% to Rockford, Skeeba, and Tapinski, respectively