Ramer and Knox began a partnership by investing $78,000 and $117,000, respectively. During its first year, the partnership earned $230,000. Prepare calculations showing how the $230,000 income is allocated under each separate plan for sharing income and loss.

Exercise 12-5 (Algo) Part 3 Income allocation in a partnership LO P2 3. The partners agreed to share income by giving a $64,000 per year salary allowance to Ramer, a $46,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $230,000. Note: Enter all allowances as positive values. Enter losses as negative values