Ramer and Knox began a partnership by investing $88,000 and $132,000, respectively.

Exercise 12-6 Income allocation in a partnership

The partners agreed to share net income and loss by granting annual salary allowances of $69,000 to Ramer and $43,000 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' shares of Ramer and Knox given a first-year net income of $117,800. 2b. Determine the partners' shares of Ramer and Knox given a first-year net loss of $35,800.

	Ramer	Knox	Total
Net income (loss)
Salary allowances
Balance of income (loss)
Interest allowances
Balance of income (loss)
Balance allocated equally
Balance of income (loss)
Share of the partners