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Part $3$ of $3$

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Exercise $12-5($Algo$)$ Part $3$ Income allocation in a partnership LO P$2$

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Use the following information for the Exercises below. $($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Ramer and Knox began a partnership by investing $$80,000$ and $$120,000,$ respectively. During its first year, the partnership earned $$235,000.$ Prepare calculations showing how the $$235,000$ income is allocated under each separate plan for sharing income and loss.

$3.$ The partners agreed to share income by giving a $$65,000$ per year salary allowance to Ramer, a $$47,000$ per year salary allowance to Knox, $10\%$ interest on their initial capital investments, and the remaining balance shared equally. Net income is $$235,000.$

Note: Enter all allowances as positive values. Enter losses as negative values.

$\backslash$table$[[,$Ramer,Knox,Total$],[$Net Income,,,,,$$,235,000],[$Salary allowances,$$,65,000,$$$,47,000,,112,000],[$Interest allowances,,$110,700,,12,300,,123,000],[$Total salary and interest,,,,,,$235,000],[$Balance of income$],[$Balance allocated equally,,,,,,$0],[$Balance of income$],[$Shares of the partners,$$,175,700,$$$,59,300,,]]$