ramer and knox began a partnership by investing $60 000 and $80 000 respectively.

During its first year, the partnership earned $160,000. Prepare calculations showing how the $160,000 income should be allocated to the partners under each of the following three separate plans for sharing income and loss:

1. The partners failed to agree on a method to share income

2 The partners agreed to share income and loss in proportion to their initial investments. ( Do not round intermediate calculations.)

3.The partners agreed to share income by granting a $50,000 per year salary allowance to Ramer, a $40,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. ( Enter all allowances as positive values. Enter losses as negative values.)

The partners agreed to share net income and loss by granting annual salary allowances of $50,000 to Ramer and $40,000 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally.( Enter all allowances as positive values. Enter losses as negative values.)

Required :

2a. Determine the partners shared of Ramer and Knox given a first-year net income of $98,800.

2b. Determine the partners shared of Ramer and Knox given a first year net loss of $16,800.

Ramer and Knox began a partnership by investing $60,000 and $80,000, respectively. Exercise 12-5 Part 1 Income allocation in a partnership LO P2 During its first year, the partnership earned $160,000. Prepare calculations showing how the $160,000 income should be allocated to the partners under each of the following three separate plans for sharing income and loss. 1. The partners failed to agree on a method to share income. 80.000 $ $ 80 000 Romer and Knox began a partnership by investing $60,000 and $80,000, respectively Exercise 12-5 Part 2 Income allocation in a partnership LO P2 2. The partners agreed to share income and loss in proportion to their initial investments. (Do not round intermediate calculations.) Fraction to Allocate Ramer Ramer's Share of Income Fraction to Allocate Knox's Share of Knox Income Total Income Allocated $75,000 / $125,000 $50,000 / $125,000 $50,000 / $75,000 $125,000 / $50,000 Ramer and Knox began a partnership by investing $60,000 and $80,000, respectively. Exercise 12-5 Part 3 Income allocation in a partnership LO P2 3. The partners agreed to share income by granting a $50,000 per year salary allowance to Romer, a $40,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Romer Net Income Salary allowances Interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income Shares of the partners S O S O The partners agreed to share net income and loss by granting annual salary allowances of $50,000 to Ramer and $40,000 to Knox 10% interest allowances on their investments, and any remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Required: 2. Determine the partners' shares of Ramer and Knox given a first-year net income of $98,800. 2b. Determine the partners' shares of Ramer and Knox given a first-year net loss of $16,800. Complete this question by entering your answers in the tabs below. Reg 2A Req 28 Determine the partners' shares of Ramer and Knox given a first-year net income of $98.800. Total $ 98.800 Allocation of Partnership Income Ramer Knox Net Income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (los) Balance allocated equally Balance of income doss) Shares of the partners Reg 2 > Required information The partners agreed to share net income and loss by granting annual salary allowances of $50,000 to Ramer and $40,000 to Knox 10% interest allowances on their investments, and any remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Required: 2. Determine the partners' shares of Ramer and Knox given a first year net income of $98,800. 2b. Determine the partners' shares of Ramer and Knox given a first-year net loss of $16,800. Complete this question by entering your answers in the tabs below. Req 2A De 28 Determine the partners' shares of Ramer and Knox given a first-year net loss of $16,800. Total (16,800) $ Allocation of Partnership Income Ramer Knox Net Income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of the partners