Ramer and Knox began a partnership by investing $70,000 and $105,000, respectively.

The partners agreed to share net income and loss by granting annual salary allowances of $60,000 to Ramer and $42,000 to Knox, 8% 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' shares of Ramer and Knox given a first-year net income of $108,800. 2b. Determine the partners' shares of Ramer and Knox given a first-year net loss of $26,800