smith, West, and Krug form a c s150,000, and Krug contributes $270,000. Their partnership interest allowance on th partnership. Smith contributes $180,000, West contributes agreement calls for a 5% e partner's capital balances with the remaining income or income of $174,000 for its loss to be allocated equally. If the partnership reports first year, what amount of income is credited to K A. $58,000. rug's capital account? B. $57,000. C. $61,500. D. $55,500. E. $48,000. 14. Groh and Jackson Jackson's capital balance $61,000. Groh and income or loss. Groh invest $35,000 A. $5,000 B. $2,500. C. $6,667 D. $3,333. are partners. Groh's capital balance in the partnership is $64,000, and Jackson have agreed to share equally in and Jackson agree to accept Block with a 25% interest. Block will in the partnership. The bonus that is granted to Block equals: E. SO, because Block must actually grant a bonus to Groh and Jackson. 15. In the absence of a partnership agreement, the law says that income (and loss) should be allocated based on: A. A fractional basis. B. The ratio of capital investments. C. Salary allowances D. Equal shares E. Interest allowances