The partners agreed to share income by granting a $53,000 per year salary allowance to Ramer, a $43,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $175,000.

3. The partners agreed to share income by granting a $53,000 per year salary allowance to Ramer, a $43,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $175,000 (Enter all allowances as positive values. Enter losses as negative values.) 8 5 Ramer Knox Total Net Income Salary allowances Interest allowances Total salary and interest $ 175,000 8,400 14,000 14,000 5,600 Balance of income Balance allocated equally Balance of income Shares of the partners $ 5,6008,400