Question 1 :

The partnerships net LOSS for the first year is still $100,000, but the partners share profits based on salary allowance, capital allowance and remining income sharing:

[1] Company has Net LOSS: $80,000 [2] Salary allowance: Tom : $ 40,000 Jerry : $ 50,000 [3] Capital allowance: 5%

[4] Remaining Net Loss: equal sharing (50% each)

_____________________________________________________________________________________ Instructions: Please use provided information to calculate the Net Income allocated each partner. The example is post with this assignment as reference.

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	Alex	Brian	Total
Net Income
Salary Allowance:
Tom
Jerry
Capital Allocation:
Tom
Jerry
Total Salary and Capital Allocation
Net Income (Loss) Remaining Allocation
Remainer Share Equally :
Tom
Jerry
Total Allocation
Net Income (Loss) Remaining Allocation
Net Income (Loss) Allocated to each partner