Ramer and Knox began a partnership by investing $84,000 and $126,000, respectively.

2. The partners agreed to share income and loss in proportion to their initial investments. Net income is $245,000. (Do not round intermediate calculations.)

Fraction to Allocate Ramer	Ramer's Share of Income	Fraction to Allocate Knox	Knox's Share of Income	Total Income Allocated
				$0

3. The partners agreed to share income by granting a $67,000 per year salary allowance to Ramer, a $41,000 per year salary allowance to Knox, 15% interest on their initial capital investments, and the remaining balance shared equally. Net income is $245,000. (Enter all allowances as positive values. Enter losses as negative values.)

	Ramer	Knox	Total
Net Income
Salary allowances			0
Interest allowances			0
Total salary and interest
Balance of income
Balance allocated equally			0
Balance of income
Shares of the partners	$0	$0