Required information[The following information applies to the questions displayed below.]Ramer and Knox began a partnership by investing $90,000 and $135,000, respectively.During its first year, the partnership earned $260,000. Prepare calculations showing how the $260,000 income is allocated undereach separate plan for sharing income and loss.1. The partners did not agree on a plan, and therefore share income equally.RamerKnox Required information[The following information applies to the questions displayed below.]Ramer and Knox began a partnership by investing $90,000 and $135,000, respectively.2. The partners agreed to share income and loss in proportion to their initial investments. Net income is $260,000. (Do not roundintermediate calculations.)Fraction to AllocateRamer's ShareFraction to AllocateKnox's Share ofTotal IncomeAllocatedRamerof IncomeKnoxIncome

1. Profits to be shared equally Net Profit = 260,000 Ramar share = 260,000 * 50% = 130,000 Knox…

Required information [The following information applies to the questions displayed below.] Ramer and Knox began a partnership by investing $90,000 and $135,000, respectively. 2. The partners agreed to share income and loss in proportion to their initial investments. Net income is $260,000. (Do not round intermediate calculations.) Fraction to Allocate Ramer Ramer's Share of Income Fraction to Allocate Knox's Share of Income Total Income Allocated Knox

Required information [The following information applies to the questions displayed below.] Ramer and Knox began a partnership by investing $90,000 and $135,000, respectively. 2. The partners agreed to share income and loss in proportion to their initial investments. Net income is $260,000. (Do not round intermediate calculations.) Fraction to Allocate Ramer Ramer's Share of Income Fraction to Allocate Knox's Share of Income Total Income Allocated Knox

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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