Required information 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 $60,000 and $90,000, respectively. During its first year, the partnership earned $185,000. Prepare calculations showing how the $185,000 income is allocated under each separate plan for sharing income and loss. Exercise 12-5 (Algo) Part 2 Income allocation in a partnership LO P2 a 2. The partners agreed to share income and loss in proportion to their initial investments. Net income is $185,000. (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 $60,000/$150,000 $ 0 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 $60,000 and $90,000, respectively. During its first year, the partnership earned $185,000. Prepare calculations showing how the $185,000 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 $55,000 per year salary allowance to Ramer, a $45,000 per year salary allowance to Knox, 15% interest on their initial capital investments, and the remaining balance shared equally. Net income is $185,000. (Enter all allowances as positive values. Enter losses as negative values.) Ramer Knox Total Net Income $ 185,000 $ 55,000 $ 55,000 110,000 8,250 8,250 16,500 126,500 Salary allowances Interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income 0 Shares of the partners $ 63,250 $ 63,250