Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. During its first year, the partnership earned $185,000. Prepare calculations showing how the $185,000 income is allocated under each separate plan for sharing income and loss. 1. The partners did not agree on a plan, and therefore share income equally. . The partners agreed to share income and loss in proportion to their initial investments. Net income is $185,000. (Do not round intermediate calculation

Required information [The following information applies to the questions displayed below.] Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. During its first year, the partnership earned $160,000. Prepare calculations showing how the $160,000 income is allocated under each separate plan for sharing income and loss. 3. The partners agreed to share income by giving 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. Net income is $160,000. Note: Enter all allowances as positive values. Enter losses as negative values