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The partnership agreement of Donald and Cohen provides for salary allowances of $89300 to Donald and $70600 to Cohen, with the remaining income or loss
The partnership agreement of Donald and Cohen provides for salary allowances of $89300 to Donald and $70600 to Cohen, with the remaining income or loss to be divided equally. During the year, Donald and Cohen each withdraw cash equal to 75% of their salary allowances. If partnership net income is $206000, Donalds equity in the partnership would
decrease the same as Cohens.
decrease more than Cohens.
increase more than Cohens.
increase the same as Cohens.
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