Ramer and Knox began a partnership by investing $58,000 and $87,000, respectively. During its first year, the partnership earned $180,000. Prepare calculations showing how the $180,000 income is allocated under each separate plan for sharing income and loss.

3. The partners agreed to share income by giving a $54,000 per year salary allowance to Ramer, a $44,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $180,000.

Note: Enter all allowances as positive values. Enter losses as negative values.

\begin{tabular}{|l|l|l|l|} \hline & Ramer & \multicolumn{1}{c|}{ Knox } & \multicolumn{1}{c|}{ Total } \\ \hline Net Income & & & \\ \hline Salary allowances & & & \\ \hline Interest allowances & & & \\ \hline Total salary and interest & & & \\ \hline Balance of income & & & \\ \hline Balance allocated equally & & & \\ \hline Balance of income & & \\ \hline Shares of the partners & & & \\ \hline \end{tabular}