Ramer and Knox began a partnership by investing $75,000 and $105,000, respectively. The partners agreed to share net income and loss by giving annual salary allowances of $57,500 to Ramer and $46,000 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Required: 1. Determine each partner's share given a first-year net income of $113,800. 2. Determine each partner's share given a first-year net loss of $31,800. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine each partner's share given a first-year net income of $113,800. Allocation of Partnership Income Ramer Knox $40boo Not Income (loss) Salary allowances Balance of income (loss) Interest abowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of the partners $ 57.500 7,500 3,850 10,500 3,850 61.150$ 52,650 Total $ 113,800 103,500 18,000 7,700
Ramer and Knox began a partnership by investing $75,000 and $105,000, respectively. The partners agreed to share net income and loss by giving annual salary allowances of $57,500 to Ramer and $46,000 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Required: 1. Determine each partner's share given a first-year net income of $113,800. 2. Determine each partner's share given a first-year net loss of $31,800. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine each partner's share given a first-year net income of $113,800. Allocation of Partnership Income Ramer Knox $40boo Not Income (loss) Salary allowances Balance of income (loss) Interest abowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of the partners $ 57.500 7,500 3,850 10,500 3,850 61.150$ 52,650 Total $ 113,800 103,500 18,000 7,700
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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